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S-Corporation Election

Discussion in 'General Business' started by Jacob Hawkins, May 30, 2018.

  1. #1
    Hello Guys,
    Please tell me How is an S-Corp managed and taxed and benefits of S-Corporation Election?
    SEMrush
     
    Jacob Hawkins, May 30, 2018 IP
    SEMrush
  2. Daniel Jameson

    Daniel Jameson Banned

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    #2
    The S corporation structure can be especially beneficial when it comes time to transfer ownership or discontinue the business. These are Advantage of S Corporation Election

    1.Separate Entity
    2.Liability Protection
    3.Personal Service Corporation Issues
    4.Shareholder Agreement
     
    Daniel Jameson, May 31, 2018 IP
  3. Petrea Dishman

    Petrea Dishman Peon

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    #3
    S Corp election eliminates double taxation that occurs as a C Corp. Revenues are not taxed at the corporate level, salaries and dividends from the s corp are taxed on individual tax returns
     
    Petrea Dishman, May 31, 2018 IP
  4. jrbiz

    jrbiz Illustrious Member

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    #4
    The reason you incorporate with any type of corporation structure is to protect your personal assets from any liability that may be incurred by your business. Not much else benefit from incorporating (in fact, there is only more cost associated with a corporation like reporting, fees, taxes, etc.) However, if you only have a small number of shareholders, you can incorporate as an S Corp or an LLC and only be taxed as if you were an individual (for the most part.) A C Corp allows for unlimited shareholders, but the tax consequences are much worse than either of the other corporation types.
     
    jrbiz, Jun 1, 2018 IP
  5. Jacob Hawkins

    Jacob Hawkins Greenhorn

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    #5
    I guess Legally S corporation has an advantage over its C counterpart in terms of tax relaxation. They are relieved from the double taxation process. Besides, S corporation shareholders can be treated as the business’ employees and are entitled to receive salaries as employees. In addition to this, owners of an S Corp are liable to report profits and losses only on their income.
     
    Jacob Hawkins, Jun 4, 2018 IP