Search/private equity investments - better in S-Corp or LLC (S-election)?

by an investor from University of Oxford

1 year ago

My CPA is worryingly unhelpful here other than telling me there's a difference when 'moving assets out'.

Thank you for any input.

I have a 'spare' S-corp already. Other considerations I'm becoming aware of:
QSBS is not for asset sales just stock sales and C-corps only but they suffer from double taxation.
S Corporations may be subject to an additional passive income tax but only if once a C corporation.

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25 comments

professional from University of Denver

Coincidentally, I'm doing a 30 minute webinar presentation on this topic on March 13. We'll post the details in the events section sometime next week.

9 months ago | like reply | 0 likes

searcher from Columbia University - Columbia Business School

I believe there are more disadvantages from a tax perspective to hold investments as an S-corp. Meanwhile, for a management company, s-crop more effective.

9 months ago | like reply | 0 likes

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