Pass-Through Corporations A Blueprint for Company Success

An S corporation is a corporation that elects to be taxed as a pass-through entity. Income, losses, deductions, and credits flow through to the shareholders. 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. 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 ... Maintaining passthrough treatment and single-level taxation can be challenging for an acquirer that is not an eligible shareholder of 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). A limited liability company classified as an association and taxable as a corporation for federal purposes may elect S corporation status. The LLC will also be ... The state of Iowa has enacted a tax provision for pass-through entities that will allow a partner or shareholder to claim a credit against the individual ... S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. This category includes sole proprietorships, partnerships, and what are called S-corporations. These are \”pass-through\” corporations, in which ... To the IRS, S corporations (S corps) are considered “pass-through entities”, which means any deductions, losses, income, credits, and profits ...