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[label style=”inverse”]An S corporation is a special type of corporation formed for specific tax purposes.[/label]
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It is taxed as a partnership: The entity itself doesn’t pay taxes, and all the profits and losses pass through to the shareholders.
[/span6] [/row] [spacer] [row] [span12] An S corporation is formed basically the same way as a C corporation: Your business lawyer helps you form the corporation, file your articles, get your tax ID number, and set up the corporate record book. The one additional step is filing a form with the IRS that qualifies the business as an S corporation.
[/span12] [/row] [spacer] [row] [span6] [label]One potential drawback is that the structure of an S corporation is limited; limits apply to:[/label] [/span6] [span6] [caret_list]
[/span6] [/row] [spacer] If you’re considering forming an S corporation, business lawyer Steve Sneiderman will explain the details to you as well as discuss potential alternatives, such as an LLC, that may help you achieve similar results without the restrictions. Contact him for more information.
[/span6] [/row] [spacer] [row] [span12] An S corporation is formed basically the same way as a C corporation: Your business lawyer helps you form the corporation, file your articles, get your tax ID number, and set up the corporate record book. The one additional step is filing a form with the IRS that qualifies the business as an S corporation.
[/span12] [/row] [spacer] [row] [span6] [label]One potential drawback is that the structure of an S corporation is limited; limits apply to:[/label] [/span6] [span6] [caret_list]
- Number of shareholders
- Types of shareholders
- Classes of stock
[/span6] [/row] [spacer] If you’re considering forming an S corporation, business lawyer Steve Sneiderman will explain the details to you as well as discuss potential alternatives, such as an LLC, that may help you achieve similar results without the restrictions. Contact him for more information.