Guide to S Corporations

Business SolutionOne of the primary advantages of an S Corporation as versus C Corporation status is that you are not subjected to double taxation. In addition, some may not be aware that a business need not be a sole proprietorship in order to qualify for this designation. In fact, here are some facts you may not know:

May have up to one hundred shareholders - This corporate designation may have up to one hundred shareholders. The downside is that you may only designate on class of stock.

Limitations on business types - Financial industry professionals and those who are in the import/export business are not allowed to use this designation.

Set business year - This corporate designation does allow you to set your own fiscal year. All taxes are reported on standard tax returns (form 1040).

Requires IRS approval - Form 2553 must be filed with the IRS before this business entity designation is legal.

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What Are the Different Types of Business Entity Structures?

Corporations are most easily defined as the structure under which a business operates. S Corporations and C Corporations have different requirements as defined by the Internal Revenue...

Corporate Taxation Variations

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IRS Audit - these words are likely to strike fear into the hearts of the strongest people whether they are individual taxpayers or business owners. The question some business owners...

Advantages of S Corporations

When it comes to business entities, the advantages to S Corporations seem to blend the best of both worlds. Read more to learn all the advantages of an S Corporation, including tax...

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    Going from Sole Proprietor to S Corp

    A sole proprietorship is a simple way to begin conducting business without expense or a significant investment of time. However, as the business thrives, it may be worth incorporating. This article examines...

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    S Corp to C Corp Conversion: What Is Required to Revoke an S Corporation Election?

    As your corporation grows, you'll need more capital. One way to get the funds you need is to sell stock. But as an S Corporation you're limited. Converting to a C Corporation is relatively easy...

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    What are the Benefits of Running Your Own Business?

    Do you often think owning a business of your own would be beneficial? Beyond setting your own work hours and using your business sense and creativity, what are the benefits of running your own business?...

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    Are There Special Rules for S Corp Meeting Minutes?

    If your business entity is an S Corporation, there are some rules to follow regarding how you record shareholder meetings. S Corp owner, Jean Scheid, discusses what’s required, what’s not,...

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    S Corporation, Distribution or Salary? Which is Best?

    So you’ve created an S Corporation and are ready to rock and roll with your business. When it’s time to pay yourself, as an owner and shareholder, should S Corporations pay distributions or...

More About S Corporation
Going from Sole Proprietor to S Corp

A sole proprietorship is a simple way to begin conducting business without expense or a significant investment of time. However, as the business thrives, it may be worth incorporating...

S Corp to C Corp Conversion: What Is Required to Revoke an S Corporation Election?

As your corporation grows, you'll need more capital. One way to get the funds you need is to sell stock. But as an S Corporation you're limited. Converting to a C Corporation...