Client Types: Rapid Fire
Chapters in this video
- 0:00 The two core dividers: liability and taxation
- 1:20 Sole proprietorships: unlimited liability and death of the owner
- 2:34 Business entities: partnerships, LLCs, and the C-corp vs. S-corp split
- 3:55 Trusts: revocable vs. irrevocable, and compressed tax brackets
- 5:37 Estates and private foundations: the 5%, 30%, and 1.39% numbers
- 7:11 S-corporation shareholder limits and estate tax return timing
- 7:35 Rapid-fire exam recap
What this video covers
- Why sole proprietorships cease to exist at the owner's death, and how that differs from individual accounts passing through probate
- How the two core dividers (liability shield vs. unlimited liability, pass-through vs. double taxation) organize every business entity comparison
- General partnership authority rules (any partner may act) vs. limited partnership rules (only the general partner) vs. LLC or corporation rules (governing documents control)
- Why the S-corporation one-class-of-stock rule bars economic differences but permits voting vs. nonvoting shares
- Revocable trust consequences (grantor keeps control, assets stay in taxable estate, no creditor protection) vs. irrevocable trust consequences
- Why trust tax brackets are compressed, and the planning strategy of distributing income to lower-bracket beneficiaries
- The three hard numbers for private foundations: 5% minimum annual distribution, 30% excise tax on undistributed amounts, and 1.39% excise tax on net investment income
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 66 course also includes adaptive practice questions and spaced-repetition flashcards.