Empowering Small Businesses The Benefits of Pass-Through Corporations

An S Corporation is an IRS tax classification that allows an eligible entity to be a pass-through entity for tax purposes. This means that the ... If you company meets all these criteria, you can submit form 2553 with the IRS. As a pass through entity, S-Corps protect their owners from double taxation. One ... They file an informational federal return (Form 1120S), but no income tax is paid at the corporate level. The profits/losses of the business are instead “passed ... Pass-through entity (PTE) tax is an elective tax on partnerships (other than a publicly traded partnership under Internal Revenue Code (IRC) Section 7704) and ... S corporations are generally not subject to an entity-level tax. Instead, an S corporation's income flows through to its shareholders and is ... For tax years beginning on or after January 1, 2022, entities taxed as S corporations and partnerships may elect annually to be subject to the PTE-E tax at a ... A domestic or foreign general partnership, joint venture, limited partnership (LP), limited liability partnership (LLP), limited liability company (LLC), ... This category includes sole proprietorships, partnerships, and what are called S-corporations. These are \”pass-through\” corporations, in which ... 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 ... This designation allows the profits of the corporation to “pass through” the business onto the shareholders or owners. Accordingly, the profits ...