Sub S Conversions

Since 1997, banks and bank holding companies have been eligible for Subchapter S election, which shifts the corporate tax burden to the company’s shareholders and eliminates the personal dividend tax liability, resulting in tax savings of 15 to 20% for most institutions. With over 33% of the country’s banks currently operating as Sub-S entities, the competitive disadvantage of retaining a C-Corp structure is becoming material. Recent changes in Sub-S qualification rules have opened the door for more conversions. Since 1997, we have assisted in over 40 community bank Sub-S elections. Let our team show you the realistic benefits and challenges of the election—you might be surprised at how easy and rewarding it can be.