Sage Summit 2014—Keep the conversation going!
Every day, we wake up committed to building something better—innovating for small and medium-sized businesses, reducing complexity, and simplifying technology for your consumption—providing you with the broadest range of choices in the industry.
Over the past few years, we have looked at how we develop our ideas and changed the way that we build and deliver our products. There are three trends that are shaping the business landscape and that are defining our next generation of solutions.
S Corporation to C Corporation: Good-to-Know Info
It is always possible at some point during the life of an S corporation, the shareholders decide they either would prefer to operate as a C corporation or, because of some event, the S corporation’s status will be terminated. What are the consequences of such a change?
First, let’s talk about the three ways in which an S corporation status is terminated:
In most cases, an S corporation’s status terminates at some time during the year, resulting in two short years: a short S corporation year and a short C corporation year. This creates the dilemma of how to calculate income and loss items for the year in which the change is made. There are two options: