Everything About Entity Conversion

TaxTax ComplianceLLCEntity ConversionPartnershipsC-CorporationForeign CorporationsInternational Tax

Form 8832 Entity Classification Election: How LLCs and Foreign Entities Use the Check-the-Box Rules

Form 8832 lets eligible entities — domestic LLCs and most foreign companies — elect to be taxed as a disregarded entity, partnership, or C corporation. This guide covers default classifications, the 60-month lockout, late-election relief under Rev. Proc. 2009-41, and how Form 8832 differs from Form 2553.

TaxTax PlanningS CorporationC-CorporationEntity ConversionCapital GainsBusiness ExitSmall Business

Section 1374 Built-In Gains Tax: The Five-Year Window That Catches C-Corp to S-Corp Conversions

When a C corporation converts to an S corporation, Section 1374 imposes a 21% corporate-level tax on appreciated assets disposed of during a five-year recognition period. This guide walks through NUBIG, NRBIG, the 2026 rules, a worked example, and seven planning moves to avoid a six-figure surprise.

S CorpSole ProprietorshipSelf-Employment TaxTax PlanningEntity ConversionReasonable SalarySmall BusinessBusiness Structure

From Sole Proprietor to S Corp: When the Switch Pays Off (and When It Backfires)

A sole proprietor netting $100,000 pays roughly $14,130 in self-employment tax that an S corp owner can legally avoid. This guide explains the break-even math, Form 2553 deadlines, reasonable compensation audit triggers, and the annual compliance costs that decide whether the switch actually saves money.

Small BusinessBusiness StructureLLCS CorporationC-CorporationSole ProprietorshipTax PlanningEntity Conversion

When and How to Change Your Business Entity Structure

Learn when and how to change your business entity structure, from sole proprietorship to LLC, LLC to S-Corp, or LLC to C-Corp. Includes income thresholds, step-by-step processes, tax implications, and common mistakes to avoid.