Pass-Through Corporations 101 A Beginner's Guide to Success

A tax-option (S) corporation may claim a credit for withholding taxes paid to another state on behalf of a Wisconsin resident shareholder as provided in sec. This designation allows the profits of the corporation to “pass through” the business onto the shareholders or owners. Accordingly, the profits ... 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 ... An S corp is any business that chooses to pass corporate income, losses, deductions, and credits through shareholders for federal tax purposes. Sole-proprietorships, LLCs, S corporations, and partnerships are “pass-through” entities, meaning they don't pay tax at the company level. S-corps, which are considered pass-through entities, have a unique tax structure given how their income distribution and loss limitations work. 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 ... An S corp pass through is a special business entity whose earnings, losses, deductions, and credits pass through to its shareholders' individual tax ... 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 ...