Harnessing the Benefits of Pass-Through Corporations A Guide for Investors

Regular corporations (C-corps) are subject to federal and state corporate income taxes (sizeable businesses pay about 35 percent at the federal ... In the United States, additional types of FTE include S corporations, income trusts and limited liability companies. ... business profits pass through the ... While pass-through taxation is a pro, it can also be a con as shareholders need to report their share of their company's business income on their individual tax ... 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 ... The filing and payment of the PTE Excise by an S corporation is not impacted by the S corporation's inclusion in a group filing a combined report (Form 355U). pass-through choice of business entity. Here is our comparison of the two ... S corporations, and, typically, limited liability companies (LLCs). The top ... A common issue in the valuation of closely held businesses is the taxation of pass-through income derived from S corporations, limited liability companies and ... sole proprietorships; trusts; non-profit corporations; corporations that are not New York S corporations. When to make the election. An S ... S Corporations and Limited Liability Companies (LLC) both protect owners from personal liability for business debts and other liabilities. Both S corps and LLCs are known as pass-through entities because they pay no corporate taxes. Instead, they pay their shareholders, who become responsible for ...