Choice of Entity

Exam Questions: 80
Course Level: Basic
Pages: 308 | Content: 292, Supplemental: 16
NASBA Area of Study: Taxes
Not Acceptable for: N/A
Version: 5155P

This course provides a general overview of the different business forms available to an entity. The various attributes of each form will be discussed, and the issues related to the formation, management, dissolution, and taxation of the entity form will be considered. PLEASE NOTE: Course material is similar to #6070: Taxation of Owner's Distributions and #6075: Termination/Dissolution of Business Entities; therefore, we recommend that you should not take #6070 and/or #6075 in the same CPE reporting period. All course material provided. No prerequisites. Course level: Basic.

EA Program Approval Number: ZX34G-T-00422-21-S

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Course Information

Table of Contents
  • Choosing a Business Form: Introduction and Overview
  • Formation of Business Entities
  • Rights and Duties of Business Owners
  • Management and Control of Business Entities
  • Liability of Owners
  • Distributions to Owners
  • Professional Business Associations
  • Transfer, Conversion and Merger of Entities
  • Termination/Dissolution of Business Entities
  • Taxation of Business Entities
  • To recall the major attributes of various entity forms
  • To recognize the requirements for the formation of various types of entities
  • To identify the rights as well as the obligations of owners in multi-owner businesses
  • To recognize the level of participation in management and personal liability of various multi-owner business entities
  • To identify personal liability characteristics of various business forms
  • To recall how profits are distributed to the owners of various entities
  • To identify the basic restrictions of professional business associations
  • To identify factors to consider related to transfers, conversions, and mergers of business entities
  • To recall the rules governing the dissolution of various business forms
  • To identify some of the tax impacts when choosing between various business entities
  • To recognize the impact of compounding

PLEASE NOTE: CPE credit measurement is based on NASBA Registry and QAS guidelines of one credit for every 50 minutes. Credit calculation may vary in different states — check with your State Board of Accountancy. Unless otherwise noted in the specific course description, no advanced preparation is required in order to register or complete any PES CPE course. Use of materials or services provided by Professional Education Services, LP ("PES") are governed by the Terms and Conditions stated on PES' website www.mypescpe.com. PES provides these courses with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely upon the individual licensee, not PES. PES encourages you to contact your state Board for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional.