Table of Contents ; How Does an S Corporation Compare to Other Business Structures? ; Benefits and Drawbacks for S Corporations ; Steps to Set Up an S Corporation
What is an LLC? ; A limited liability company (LLC) is a business structure that protects the personal assets of the business’s owners (referred to as “members”). Suppose the business gets tangled in legal troubles or is sued by a debt collector. In that case, the plaintiff or creditor can only go after the business’s assets, not the LLC members’ personal assets. If the LLC is taxed as a sole proprietorship, it has the tax advantages of being a pass-through entity, which means its profits “pass through” the business to the LLC mem ...
Setting up a new business venture? Picking the right business structure is crucial. Luckily, there are various ways to structure your business, with five primary types being partnership, LLC, sole...
An LLC passes taxes to owners and protects their personal assets; an S corporation is a tax-filing status that allows a company to pass taxes to shareholders.
An S Corporation (S Corp) is a closely held corporation (Limited Liability Company (LLC), partnership, or C Corporation) that is treated as a pass-through entity for federal tax purposes. It is created through election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. The tax status does not change the operations of the business, but it means that the corporation will not pay federal income tax; rather, the tax burden will be passed on to shareholders. The S Corporation elects to pass income, losses, deductions, and cred ...
Q: Is there a way for me to set up an S corp. on my own? · Jake Smith, Boise, Idaho · A: You can set up an S corp., where all profits and losses go to the owners who pay taxes at their personal income-tax rate, on your own, but it will take some paperwork. First, incorporate your business under state laws. Your state's secretary of state's Web sites will usually have information on forms and fees on how to do this. For a fee, some Web sites and software will file those forms for you. But res...
Setting up your business as an S corporation (S corp) provides several tax advantages that are not available to owners of C corporations (C corp) or Limited Liability Companies (LLCs). You may wonder how the S corporation taxation generally works. Are you really doing everything you can to reduce your tax burden? And are you taking full advantage of all the business exemptions and credits available in your industry? · The following guide offers numerous strategies and tips that owners of S cor...
You can also set a higher quorum requirement in your corporation’s bylaws. You will need to pay filing fees to various authorities, both state and federal, when submitting your articles...
Potential or existing business owners often face the choice of setting up either as a C Corp vs S Corp when starting a new business or changing their
TABLE OF CONTENTS ; What is an S corporation? · Taxes on S corporations · Federal income tax filing requirements and deadlines for S corporations