By distributing earnings from the business as S Corp dividends instead of salary, they avoid employment taxes. The IRS is very aware of this tactic, and they are not afraid to challenge it.

The House Ways and Means Committee on September 15 th, approved tax increases and tax relief proposals that are to be acted on by the House of Representatives as part of the “Build Back Better ...

She elected S corporation status when the individual tax rates were lower than those for a C corporation. When an S election is made, the prior retained earnings are trapped in the company unless ...

When comparing C corp vs. S corp, there are three main categories in which they differ: formation, ownership and taxation. According to Nav Technologies, C corporations are considered the default ...

Several factors distinguish S Corp vs C Corp tax advantages. Choosing to become a C Corp or S Corp can have a sizable effect on a business’s future, growth, and investor base. There’s no easy ...

S corporations don't pay income tax. Although the corporate structure protects the owners from liability, they pay tax individually as if it were a partnership or sole proprietorship. Owners ...

Can I terminate the corporation and recognize the $200,000 loss? How do I figure S-corp taxes? - Remaining Bro Dear Remaining Bro, The general rule is that a liquidating corporation recognizes a ...

Filing taxes for your LLC as an S Corp allows an owner-operator to designate him- or herself as an employee of the LLC yet to still report the income of the business on their personal tax return.

The Internal Revenue Service closes an unusually high percentage of audits of S corporation tax returns with no recommended adjustments, suggesting that many of the audits are unnecessary and ...

By doing so, entrepreneurs can get the asset protection of corporate status while also enjoying the tax benefits of a pass-through entity. Yet when it comes time to sell an S corporation ...

To reduce state taxes, historically at this time of year S corporation owners are making their shareholder bonus lists and checking them twice; however, tax reform means a bonus may result in ...