Corporate Tax Rate

[beachFool]

I don't understand your confusion.

Are you saying that you believe that publicly traded C-corps cannot acquire S-Corps?

There is a whole field of M&A consulting build around the various tax treatments available to such an acquisition. If this is confusing to you, perhaps you should look into some training in the areas of finance and tax law.

I misunderstood your post, I assumed (and that gets me in trouble) you meant a C corp trying to "acquire" S corp status.

Years ago, I approached my retarded CPA about my C corp acquiring S corp status. The ding-a-ling blew me off.

I have a different accountant and 2 'S' corps now.

C corps can buy S corps and your analysis makes sense.

Now that I reread your post it's clear.

Sorry for the confusion.

I do disagree strongly with your assertation that an S corp

" makes it significantly easier to comingle personal expenses, etc.."

The same tax laws you refer apply equally to S and C corporations.

I agree completely that "the reporting/conformance burden of big government oversight ways far more heavily on them (small businesses) than it does on large corporations."

Thanks for the tip but I have over 30 hours of continuting education credit for 2010.

 

[futurebeachbum]

I misunderstood your post, I assumed (and that gets me in trouble) you meant a C corp trying to "acquire" S corp status.

Years ago, I approached my retarded CPA about my C corp acquiring S corp status. The ding-a-ling blew me off.

I have a different accountant and 2 'S' corps now.

C corps can buy S corps and your analysis makes sense.

Now that I reread your post it's clear.

Sorry for the confusion.

I do disagree strongly with your assertation that an S corp

" makes it significantly easier to comingle personal expenses, etc.."

The same tax laws you refer apply equally to S and C corporations.

I agree completely that "the reporting/conformance burden of big government oversight ways far more heavily on them (small businesses) than it does on large corporations."

Thanks for the tip but I have over 30 hours of continuting education credit for 2010.

No problem.

Maybe its not an S-corp thing. Maybe its a small business thing and all of them that I examined happened to be S-corps. I just (maybe mistakenly) assumed that audit requirements would be a bit stronger on C-corps.

Every S-corp I looked at had revenue recognition issues; the owners spouses traveling to 'conferences and events' with the owners at company expense; spouslings drawing pay and/or with company cars without really working there; vacation condos owned by the business but only used by the owners and their families;the list goes on and on.

Even with an asset purchase, the risk was just too great for our conservative board so I gave up.