Unraveling the Companies that Utilize Pass-Through Corporation Strategies

This designation allows the profits of the corporation to “pass through” the business onto the shareholders or owners. Accordingly, the profits ... The other form of pass-through entity is an S-Corp. This company form is initially organized as an LLC and then filed with the IRS to be ... Partnerships and S corporations benefit from pass-through taxation but differ significantly in stock, personal liability, ... The main advantage of an S Corp is the pass-through taxation. When comparing an LLC vs. an S Corp in Florida, there are more tax advantages for ... Partnerships;; federal S corporations that have made the New Jersey S corporation election; and; Limited liability companies (LLCs). The entity ... To the IRS, S corporations (S corps) are considered “pass-through entities”, which means any deductions, losses, income, credits, and profits ... Regular corporations (C-corps) are subject to federal and state corporate income taxes (sizeable businesses pay about 35 percent at the federal ... Accordingly, the S Corporation is most commonly used for family or other closely owned businesses that obtain capital from their individual stockholders and/or ... In breakdown of owners, the survey found 57% of family businesses are S Corporations, 19% are limited liability entities, and 2% operate as ... Maintaining passthrough treatment and single-level taxation can be challenging for an acquirer that is not an eligible shareholder of S ...