World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

Merger & Acquisition FAQ – April 2015

Q: I am interested in having my business valued for a number of reasons.  Is a valuation done for estate planning purposes effective for other purposes such as financing as well?

A: Generally, you would want to have your valuation reviewed or updated to reflect accurate value to a bank or when using the valuation for other purposes.

Q: I would like to set up a Subchapter S Corporation.  How do I do this?

A: You must first file articles of incorporation with your respective state.  Once this is done, IRS Form 2553 must be filled out to make the Subchapter S election.

Q: I am the owner of an S Corporation.  If in any given year I do not take any money out of the company, will I have to pay taxes on the income from the business?

A: S Corporations are what is known as “flow through entities”.  If an S Corporation turns a profit, that profit flows through to the owner(s) of the company.  Regardless of what distributions or cash the owner takes from the company, the shareholder will see income from the profit of the company.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors