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Comparing An Asset Sale of Business by C-corp versus S-Corp or LLC

By Kenneth H. Bridges, CPA, PFS     March 2011

Assume a selling price of $10,000,000, corporate capital gains rates of 34% and 6% for Federal and Georgia, respectively, and individual capital gains rates of 15% and 6% for Federal and Georgia, respectively.

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Note:  The above analysis assumes that all gain is treated as capital gain as opposed to ordinary income, and assumes no “built-in gains” tax to be incurred by the S-corp.

 

Kenneth H. Bridges, CPA, PFS is a partner with Bridges & Dunn-Rankin, LLP an Atlanta-based CPA firm.

This article is presented for educational and informational purposes only, and is not intended to constitute legal, tax or accounting advice.  The article provides only a very general summary of complex rules.  For advice on how these rules may apply to your specific situation, contact a professional tax advisor.