To make an election under subchapter S, a corporation may not have more than 100 shareholders. Trusts may be among such shareholders, but only if they fall within certain classes of trusts, including qualified subchapter S trusts (QSSTs) and electing small business trusts (ESBTs). There are very strict rules that must be complied with in order for trusts to qualify and continue to be treated as QSSTs and ESBTs, and noncompliance can destroy the corporation’s eligibility as an S corporation.
This webinar will briefly explain the S corporation rules and discuss the requirements for trusts to qualify as QSSTs and ESBTs, as well situations in which they should be considered as planning tools.
Practitioners will gain knowledge of:
• An overview of the rules required for a corporation to be able to be classified as an S corporation.
• The reasons why S corporation status may be desirable.
• The rules with which trusts must comply in order to qualify as QSSTs and ESBTs.
• Situations in which clients may benefit from having a QSST or ESBT.
More information to follow.