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GENERAL INFORMATION
An S corporation or S-corp., for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S Corporations do not pay any income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
BENEFITS
Pass Through Of Losses
Corporate losses can be passed through to the shareholders, and as the owner (and shareholder), you may be able to take the loss against income that appears on your personal return.
Limited Personal Liability
You can have the protection of limited personal liability without having to pay corporate taxes.
Tax Savings
You can minimize self-employment tax and FICA tax. Your profits, as a shareholder, are not taxed in this manner.
Easier To Raise Capital
It's easier to raise capital as a corporation than as a sole proprietorship or partnership.
DRAWBACKS
Numerous regulations and requirements must be upheld by an S Corporation, including a limit on the number of shareholders.
Like a C Corporation, it can be costly to set up and follow corporate formalities.
Close scrutiny by the IRS of shareholder-employees, who must receive reasonable compensation (subject to employment taxes) before any non-wage distributions may be made to that shareholder-employee.
PRICE LIST
Prices are included with the State fees.
S-Corporation: $285.00
WE ARE A DOCUMENT FILING SERVICE AND DO NOT GIVE LEGAL OR TAX ADVICE