Entity Choice After OBBBA FLEXCAST

Overview

Choosing the right entity is never just a checkbox and OBBBA era rules make the tradeoffs sharper. This course walks through the core options and the practical tax and non-tax considerations that tend to decide the outcome, with a clear bias toward keeping things simple when the facts allow it. This course also covers common gotchas that drive structure decisions, like reasonable compensation in S corps, treatment of personally paid business expenses under current itemized deduction rules, and how entity elections work in practice.

Highlights

Major OBBBA changes. Sole proprietor. Partnership. C-corporation. S-corporation. Limited liability company.

Prerequisites

None.

Designed For

CPAs and tax professionals.

Objectives

Identify the primary tax and non-tax factors that drive entity selection among sole proprietorships, partnerships, C corporations, S corporations, and LLCs. Evaluate how the post-OBBBA SALT limitation impacts pass-through owners and explain when PTET may improve deductibility. Apply QBI deduction concepts to entity choice, including threshold effects and the impact of SSTB classification and wage/UBIA limitations. Distinguish entity-level versus owner-level tax implications of the 21% corporate tax rate when a business expects to retain earnings for growth. Describe compliance and reporting differences across entity types, including core federal forms and payroll reporting considerations where applicable. Explain default LLC tax classifications and outline the process and timing requirements for making or changing entity elections, including common limitations and late-election considerations.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.