Why an S-Corporation? S-Corporation status can result in enormous savings in federal and state taxes and can enhance the tools available to manage the corporation's shareholder base.

"Our three S-Corporation banks all earned over 20% in ROE last year. S-Corporation is the way to go!"

G. O. Persons III - President
Persons Banking Company

While the S-Corporation structure may be advantageous to community banks, many cannot utilize this structure because S-Corporations are only permitted to have a limited number of shareholders. However, corporate techniques that permit the removal of excess shareholders at fair value are readily available. Our attorneys are highly skilled in structuring financial institutions to achieve maximum profitability and management efficiency through Subchapter-S conversions. For more information about S-Corporations, please see our Memorandum.

Together, we have analyzed the following factors for clients considering a Subchapter-S conversion:

• Appropriate number of shareholders

• Impact on officers, directors and employees and their stock options

• Cost

• Impact on capital and dividend policies

• Impact on cashed-out shareholders, including customers and local residents

• Impact on future transactions and the ability to raise capital

• Potential regulatory issues

• Presentation to community