Entity Classification Elections: Federal Tax Treatment and State Law Considerations for LLCs, Partnerships, S Corporations, and C Corporations

A business owner picks a legal form under state law and a tax classification under federal law. Those are two separate decisions, and the gap between them shapes tax bills, ownership flexibility, and liability protection for years.

Frost Law attorneys Jessica Marine and Lorenzo Bivans explain how the federal rules classify and tax LLCs, state law partnerships, S corporations, and C corporations. They walk through the steps an owner takes to move a business from one classification to another and show where state law changes the calculus.

The second half of the hour focuses on S corporations: which shareholders qualify, how an LLC elects S corporation status, the single-class-of-stock rule, and reasonable compensation for owner-employees. The presenters close with a review of 2025-2026 legislation, regulations, and case law that bear on these choices.

Who should attend: CPAs, Enrolled Agents, business attorneys, and business owners weighing a change in entity or tax status.