Tax Optimization Strategies A Guide to Pass-Through Corporations

This is because the S corp is a tax designation rather than an actual business entity. Both limited liability companies (LLCs) and corporations can file to be ... Maintaining passthrough treatment and single-level taxation can be challenging for an acquirer that is not an eligible shareholder of S ... 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. Pass-through taxation: With pass-through taxation, your business isn't subject to corporate income tax. Income is taxed through the shareholders ... The majority of U.S. businesses are pass-through entities, which include S-corporations, limited liability companies (LLCs), partnerships, and ... Instead, the company's individual shareholders split up the income (or losses) amongst each other and report it on their own personal tax ... A common issue in the valuation of closely held businesses is the taxation of pass-through income derived from S corporations, limited liability companies and ... These businesses include LLCs, partnerships, S corporations, and sole proprietorships. Many businesses are pass-through (sometimes called "flow- ... A pass-through business is a sole proprietorship, partnership, or S corporation that is not subject to the corporate income tax. pass-through choice of business entity. Here is our comparison of the two ... S corporations, and, typically, limited liability companies (LLCs). The top ...