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Choice of Entity for Service Businesses, Including Law Firms—OSB CLE Quick Call (Replay)
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1 General CLE credit

Providing services makes up nearly 70% of the national economy—and most of the growth in the economy. Yet conventional choice-of-entity analysis still often relies on factors not specifically related to how a service business differs from a business that produces something tangible for sale. This overlooks the fairly dramatic tax differences in the treatment of income generated through services versus producing something. This program gives you a practical framework for the nontax regulatory considerations in choosing an entity for a service business, the varying tax treatment of services income in different types of entities, and special considerations for law firms and practices in choosing an entity.

  • Major tax and nontax choice-of-entity considerations for service-based businesses versus businesses producing tangible goods
  • Differences in tax treatment of services-generated income across entities
  • Regulatory mandates that may dictate choice of entity for certain service businesses
  • Special considerations in law firms and law practices
  • Sale-of-business considerations, including goodwill

Speaker: Alson R. Martin is a partner in the Overland Park, Kansas, office of Lathrop and Gage LLP, where he has a national practice focusing on business law, taxation, health care, and retirement plans. He is a Fellow of the American College of Tax Counsel and the American College of Employee Benefits Counsel. Mr. Martin is the author of Limited Liability Companies and Partnerships and the coauthor of Kansas Corporation Law & Practice (Including Tax Aspects). He is also the president and a director of the Small Business Council of America. Mr. Martin received his LL.M. from New York University School of Law.

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(Original program date: May 18, 2010)