FML founding partner Lisa Willauer was quoted by CNN in an article about the differences between S corps and C corps and their pros and cons. Recently named one of the Top 200 CPAs in America by Forbes, Lisa has honed her expertise by working with businesses of all sizes, from start-ups to multi-billion dollar publicly traded companies.
Identifying and optimizing tax-saving opportunities for clients is always top of mind for Lisa. Here’s is the section of the article where she is quoted:
C corps do have some major tax advantages that S corps don’t, especially if you’re working with a lot of money. Lisa Willauer, a co-founding partner at one of the largest accounting and advisory firms in Connecticut (Fiondella, Milone, and LaSaracina LLC), pointed out a few things when we chatted with her. For example, if you sell off originally issued shares of qualified small business stock, you can exclude up to 10 times the original shares (up to $10 million) from your income.
“So if you sell for $11 million with a basis of $1 million, instead of paying $2 million to the federal government for capital gains tax, you pay nothing. This exclusion does not exist for a partnership or S corporations, and only applies to qualified small business stock which has been held for five years,” Willauer said.
Another C corp taxation advantage is that you can deduct employee benefit costs as long as they apply to over 70% of corporation employees.
Read the full article from CNN.
