C corporations are often the best planning option for business entities. However, fears of the dreaded “double-taxation” may lead some to reject C corps without a closer look. But double taxation can be reduced, and in some cases avoided, making it an option worth considering. Attorneys seeking to maximize tax savings for their clients should investigate whether C corps are a good option for their estate planning. Simply put, double taxation means that the C corp is taxed on its income at the corporate level, and then its shareholders are taxed on the same income when it is distributed to them in the form of dividends.  Understandably, this is a situation most want to avoid or minimize.

If there was ever any doubt, the U.S. Tax Court has recently clarified that the sole member of a single member LLC can, in certain circumstances, be held liable for the employment tax liability of the entity.

Clients of means can benefit significantly from a Qualified Personal Resident Trust (QPRT), but your firm needs to set up this valuable estate planning tool accurately and correctly. A QPRT can reduce your client’s taxable estate, but if your client lives beyond the initial trust term, all sorts of concerns arise. Wealth Docx® QPRT software ensures potential mistakes don’t occur.