The Sale of a Multi-Location Dental Practice with a C to S-Corp Conversion

Two clients were selling their multi-location dental practice for $16MM. Since their business had been set up as a C Corporation, we suggested that they do an S Corp conversion inside of escrow and defer their payments to begin at the conclusion of the 5-year look back period. By doing so, they eliminated $3.2MM in C Corp taxes. In addition, the clients will receive all the tax savings expected during the 10-year payment period when they begin to receive traditional installment sale payments.