Simplifying Business Ownership A Guide to Pass-Through Corporations

BUSINESSES · INDIVIDUALS · TAX PROFESSIONALS · GOVERNMENTS · UNCLAIMED PROPERTY. Pass-Through Entity-Level Tax: Tax-Option (S) Corporation General Election ... This new Bloomberg Tax Portfolio summarizes the key considerations for pass-through business taxpayers considering conversion to C corporation (C corp) status. Rather, shareholders in the businesses considered S Corporations are taxed at the personal income tax rate, 3.07 percent. Shareholders of an S Corporation ... Eligible corporations, however, are permitted to make an election to be treated as an S corporation, which enables the shareholders to receive pass-through ... A pass-through business is a sole proprietorship, partnership, or S corporation that is not subject to the corporate income tax. Section 7701(a). The term "partnership" shall include a limited liability company that is treated as a partnership for federal income tax purposes. S ... An S corporation is a business that elects to be treated as a pass-through business for federal income tax purposes. This means its profits are ... If you company meets all these criteria, you can submit form 2553 with the IRS. As a pass through entity, S-Corps protect their owners from double taxation. One ... 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 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.