You cannot tell from the recent decision of California State Board of Equalization why Analytical Environmental Services was formed as a California C corporation in 2001. Whatever the reason, there was either a change in circumstances or the owners changed their minds, because AES elected S status effective January 1, 2005. Apparently paying California $115,013 in Built-In Gains tax was not part of the plan, but that is the way it is working out.
You cannot tell from the recent decision of California State Board of Equalization why Analytical Environmental Services was formed as a California C corporation in 2001. Whatever the reason, there was either a change in circumstances or the owners changed their minds, because AES elected S status effective January 1, 2005. Apparently paying California $115,013 in Built-In Gains tax was not part of the plan, but that is the way it is working out.
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