Pass-Through Corporations A Comprehensive Guide to Company Structures

An S Corporation (S Corp) is a closely held corporation (Limited Liability Company (LLC), partnership, or C Corporation) that is treated as a pass-through ... Rather, shareholders in the businesses considered S Corporations are taxed at the personal income tax rate, 3.07 percent. Shareholders of an S Corporation ... Corporations are a separate taxpaying entity while pass-through businesses are not. That crucial distinction has important implications, ... Pass-through businesses, such as sole proprietorships, partnerships, and S corporations, are treated differently than C corporations under ... 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 ... Not be an inherently ineligible corporation—insurance companies, certain types of financial businesses, and international sales corporations are ineligible. If ... The 2017 tax law created a new deduction for certain income that owners of pass-through businesses (partnerships, S corporations, and sole ... 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 ... a single-member limited liability company, qualified subchapter S subsidiary or other entity type that is treated as a disregarded entity for federal income tax ... Pass-through taxation. Both LLCs and S corporations are pass-through tax entities. (Although an LLC can choose not to be taxed as pass-through if the owners ...