Deciphering the World of Pass-Through Corporations Company Insights

S-corps, which are considered pass-through entities, have a unique tax structure given how their income distribution and loss limitations work. An S corporation is a corporation that's treated as a 'pass-through entity' for federal tax purposes. The “S” in 'S-Corp' refers to Subchapter S in Chapter 1 of ... In a stock transaction for an S-corporation, the buyer acquires the ownership share of the company from the seller(s) and becomes the legal ... Pass-through taxation. Both LLCs and S corporations are pass-through tax entities. (Although an LLC can choose not to be taxed as pass-through if the owners ... A tax reform that cuts C corporation rates while leaving pass through rates high would present S corporation with a lose-lose scenario. LLCs: LLCs also have pass-through taxation, but they have more flexibility than S corps. An LLC can choose to file taxes as a sole ... An S corporation is merely an incorporated manufacturer, distributor, or contractor that has chosen to be treated as a partnership for tax purposes. It offers ... If the shareholder(s) of an S corporation made an S election for federal purposes, New York State does not automatically treat the company as a ... Entities (like LLCs) classified as partnerships or S corporations for tax purposes, also known as pass-through entities, offer businesses the opportunity to ... The main advantage of an S Corp is the pass-through taxation. When comparing an LLC vs. an S Corp in Florida, there are more tax advantages for ...