Business Entity Selection for Attorneys, Limited Liability Partnerships, Professional Corporations and Sole Proprietorships

1. LLP versus P.C. versus sole proprietor Solving the puzzle Roger Royse Royse Law Firm, PC 1717 Embarcadero Road Palo Alto, CA 94303 rroyse@rroyselaw.com www.rroyselaw.com www.rogerroyse.com Skype: roger.royse Attorney’s Breakfast Meeting March 23, 2011 IRS Circular 230 Disclosure: To ensure compliance with the requirements imposed by the IRS, we inform you that any tax advice contained in this communication, including any attachment to this communication, is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to any other person any transaction or matter addressed herein.

2. LLP versus P.C. versus sole proprietor Solving the puzzle Howard Loomis Partner 267 E. Campbell Avenue, Suite 200 Campbell, CA 95008 Phone (408)385-3400 hloomis@loomiscpas.com www.loomiscpas.com 2

3. 3 LEGAL REQUIREMENTS P.C. LLP Sole Proprietor Notes: Notes: Notes:

4. 4 LIABILITY PROTECTION P.C. LLP Sole Proprietor * Except for own malpractice & payroll tax claims * Except for personal negligence Notes: Notes: Notes:

5. 5 SINGLE LAYER OF TAX LLP P.C. Sole Proprietor * Depends on S Election Notes: Notes: Notes:

6. 6 INCOMETAXES AND FEES LLP P.C. Sole Proprietor * Pay $800 annual fee Notes: Notes: Notes:

7. 7 METHODS OF ACCOUNTING LLP P.C. Sole Proprietor Notes: Notes: Notes:

8. 8 YEAR ENDS LLP P.C. Sole Proprietor Notes: Notes: Notes:

9. 9 USE OF BENEFIT PLANS LLP P.C. Sole Proprietor Notes: Notes: Notes:

10. 10 SELF EMPLOYMENT TAXES LLP P.C. Sole Proprietor Notes: Notes: Notes:

11. 11 SPECIAL ALLOCATIONS OF INCOME LLP P.C. Sole Proprietor Notes: Notes: Notes:

12. 12 BASIS FOR DEBT LLP P.C. Sole Proprietor Notes: Notes: Notes:

13. 13 CONVERSION, SALE OR LIQUIDATION LLP P.C. Sole Proprietor Notes: Notes: Notes:

14. LLP versus P.C. versus sole proprietor Solving the puzzle Roger Royse Royse Law Firm, PC 1717 Embarcadero Road Palo Alto, CA 94303 rroyse@rroyselaw.com www.rroyselaw.com www.rogerroyse.com Skype: roger.royse Attorney’s Breakfast Meeting March 23, 2011 IRS Circular 230 Disclosure: To ensure compliance with the requirements imposed by the IRS, we inform you that any tax advice contained in this communication, including any attachment to this communication, is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to any other person any transaction or matter addressed herein.

15. LLP versus P.C. versus sole proprietor Solving the puzzle Howard Loomis Partner 267 E. Campbell Avenue, Suite 200 Campbell, CA 95008 Phone (408)385-3400 hloomis@loomiscpas.com www.loomiscpas.com 15