Companies that Leverage Pass-Through Corporations A Comprehensive Guide

S Corporations, like LLCs, do not have to pay corporate income tax; the S Corporation's income is treated as pass-through income. Another advantage of an S ... This new Bloomberg Tax Portfolio summarizes the key considerations for pass-through business taxpayers considering conversion to C corporation (C corp) status. A pass-through business is a sole proprietorship, partnership, or S corporation that is not subject to the corporate income tax. Accordingly, the S Corporation is most commonly used for family or other closely owned businesses that obtain capital from their individual stockholders and/or ... Regular corporations (C-corps) are subject to federal and state corporate income taxes (sizeable businesses pay about 35 percent at the federal ... An S corporation is a corporation that elects to be taxed as a pass-through entity. Income, losses, deductions, and credits flow through to the shareholders. An S corp isn't technically a business structure — it's a tax classification. All businesses have the option of electing to be taxed as an S ... An S corporation reports income or loss to every nonresident individual, estate, or trust shareholder on a Form 60 – S Corporation Income Tax Return. This form ... Section 7701(a). The term "partnership" shall include a limited liability company that is treated as a partnership for federal income tax purposes. S ... On the other hand, S Corporations (“S Corps”)—corporations taxed under Subchapter S of the Internal Revenue Code—and limited liability companies (“LLCs”) are ...