The IRS tells us there are approximately two S Corporations (“S Corps”) for every one C Corporation filing a corporate tax return. I find S Corps a wonderful planning structure for privately ...

The conversion of an S Corp. to an entity taxed as a partnership (such as a Limited Partnership or a Limited Liability Company) is a now a taxable event. The proposed bill would temporarily allow ...

This tax can be avoided by making sure the S corporation has no earning and profits, which can be accomplished by paying the 15% tax now on any so-called trapped earnings.

To discourage corporations from switching to S status just to avoid tax on asset sales, the federal government taxes such sales at 35 percent, the top tax rate. The corporation, not you and the ...

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 ...

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 ...

My brother and I set up an S corporation to buy and sell real property. When the market collapsed, we were stuck with a home that cost us $500,000 with a $400,000 mortgage and $300,000 value. My ...

For an owner-operator previously banking $80K in income annually who moves to pay him- or herself a salary of $50K and file tax returns as an S Corp, the tax savings on that additional $30K would ...

Many business owners set up their businesses using corporations that can qualify for an election under Subchapter S of the Internal Revenue Code. By. Tax Treatment of Selling a Subchapter S ...

S corporations annually file Form 1120S, U.S. Income Tax Return for an S Corporation, although they generally do not pay any federal income taxes. Instead, an S corporation’s income, deductions, and ...

If an S corp. qualifies for the full 20 percent deduction, it’s advantageous to not pay big owner bonuses, as it subjects the money to higher tax liability. Instead, take them out as a distribution.