From a retirement planning perspective, does a C corporation offer any advantages over other entities?
There is near parity between incorporated and unincorporated retirement plans in terms of deductions and benefits. However, the following two advantages exist with respect to the pension plan of a C corporation: * The taxpayer may borrow up to $50,000 from a corporate pension plan provided that the loan is secured and its terms are similar to those required by a financial institution. * Generally, corporate pension plans subject to ERISA receive more court protection from creditors than unincorporated plans. 13. Of the various types of entities, which is allowed to freely choose its year end? Only the C corporation can still provide limited income splitting through the use of salary and bonuses paid in the calendar year of the stockholder/ employee(s) following the corporation’s first fiscal year. 14. From an income tax perspective, what are the benefits of an LLC over an S corporation? * When the LLC borrows money, the owner-members are treated as incurring a proportionate amount of d
