What Is the F Reorganization, and Why Is It So Popular?

This year has seen an uptick in F reorganizations. Let’s explore the advantages and disadvantages for buyers and sellers.

Three business executives walk side by side outside the front entrance to a skyscraper.
(Image credit: Getty Images)

Recent S corporation sales have increasingly used an F reorganization structure this year. This article focuses on:

  • The definition of an F reorganization
  • The effect of the reorganization on both the buyer and the seller
  • Why F reorganizations are so popular

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John M. Goralka
Founder, The Goralka Law Firm

Founder of The Goralka Law Firm, John M. Goralka assists business owners, real estate owners and successful families to achieve their enlightened dreams by better protecting their assets, minimizing income and estate tax and resolving messes and transitions to preserve, protect and enhance their legacy. John is one of few California attorneys certified as a Specialist by the State Bar of California Board of Legal Specialization in both Taxation and Estate Planning, Trust and Probate.