Maximize Growth A Guide to Pass-Through Corporations for Small Businesses

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 ... Maintaining passthrough treatment and single-level taxation can be challenging for an acquirer that is not an eligible shareholder of S ... S Corps, also known as Subchapter S Corporations, are pass-through entities. This means the company can pass on business profits and losses to shareholders ... pass-through choice of business entity. Here is our comparison of the two ... S corporations, and, typically, limited liability companies (LLCs). The top ... Pass-through income is only subject to a single layer of income tax and is generally taxed as ordinary income up to the maximum 37 percent rate. Corporations, and limited liability companies that elect to be taxed as a corporation, are not pass-through entities. Many entrepreneurs choose ... Pass-through entities include sole proprietorships, partnerships, S corporations and LLCs that have not elected to be taxed like a C-corp. An S corporation's tax items generally pass through to shareholders on a pro rata basis and are reportable by S corporation shareholders in the ... In breakdown of owners, the survey found 57% of family businesses are S Corporations, 19% are limited liability entities, and 2% operate as ... Pass-through businesses include sole proprietorships, partnerships, and S-corporations. Because these businesses' decisions are affected by ...