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Webinar (CA): S Corporations: Qualification, Election and Termination


The use of an S corporation election can dramatically affect the tax consequences of owning a corporate business. Focus on the requirements that must be satisfied and the process necessary to make this tax election. Once the election is made, it can be voluntarily or involuntarily be terminated. Discuss possible relief for inadvertent terminations. Where termination is voluntary, tax planning opportunities will be identified and explained.

Learning Objectives

• Identify and discuss the requirements that must be satisfied to make the S corporation election.
• Recognize complications related to having trusted, estates, tax-exempt and ESOP shareholders.
• Review and application of the one class of stock requirement to accomplish continued qualification.
• Determine tax planning ideas to accommodate economic participation by disqualified investors.
• Identify the process that must be followed to make the election, including when the election must be made and the consequences of a defective election.
• Recognize tax planning opportunities related to voluntary termination.
• Identify the possible application of the inadvertent termination rule to avoid an unplanned termination.
• Recognize limitation on re-electing after a termination.

Major Topics

• Qualified shareholder requirement
• Trusts as shareholders
• Estates as shareholders
• Qualified tax-exempt shareholders
• Tax planning ideas to accommodate economic investments by disqualified investors
• Special rules for counting the number of shareholders
• One class of stock requirement
• Indirect preferences creating a risk of failing one class of stock requirement
• Disqualified corporations
• Making an effective S corporation election
• Relief for late or defective elections
• Inadvertent termination relief for involuntary terminations
• Reasons for involuntary termination
• How to voluntarily revoke an S corporation election
• Why voluntarily revoke an S corporation election
• Tax planning related to a planned termination.
• Re-election after termination

California CPA Education Foundation
Course Level
CPE Field of Study
Who Should Attend

CPAs and attorneys.

John McWilliams

Understanding the basics of taxation of corporations, S corporations and partnerships.

Advanced Preparation

This webinar is produced by CalCPA. You will receive your login link/instructions and Certificate of Attendance directly from this third-party vendor. It is important that you review your COCPA confirmation for details on receiving your login instructions and COA from said vendor.

Event Information
Dec 3, 2021
9:00 am - 11:00 am MDT
Total CPE Credits


$ (% off)


$ (% off)
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Webinar (CA): S Corporations: Qualification, Election and Termination

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