Tax free incorporation . . . maybe not! Taxable distributions . . . maybe not! Mergers, acquisitions, and reorganizations made simple. Understand the law governing corporate formations, distributions of property, redemptions, liquidations, reorganizations, carryover of net operating losses, and other corporate tax attributes. You can know the real balance of “Earnings and Profits” and why that number might be important. Low tax rates on the first $75,000 of income and the possibility of increased rates of income tax on individuals make the C corporation a reasonable alternative to S corporation status.