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What's an S Corp Really Worth?What's an S Corp Really Worth?
Although many business valuation analysts are well-aware of the issue, it's not something estate planners and tax attorneys typically think of when advising clients who own pass-through entities such as S corporations and limited liability companies (LLCs). They should. During the last five years, the issue has dramatically changed the way the Internal Revenue Service and many analysts estimate the
Daniel R. Van Vleet, managing director, Duff & Phelps LLC, Chicago
Although many business valuation analysts are well-aware of the “tax-affecting” issue, it's not something estate planners and tax attorneys typically think of when advising clients who own pass-through entities such as S corporations and limited liability companies (LLCs).
They should. During the last five years, the “tax-affecting” issue has dramatically changed the way the Internal Revenue Service and many analysts estimate the value of pass-through entities. The result, too often, has been much higher taxes for clients.
To properly advise clients about wealth preservation strategies, estate planners and tax attorneys need, at minimum, a layman's understanding of the tax-a...
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