Unraveling the Complexity of Pass-Through Corporations

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 ... Maintaining passthrough treatment and single-level taxation can be challenging for an acquirer that is not an eligible shareholder of S ... 80% of family businesses and generationally owned businesses, are organized as a Pass-Through Entity such as Limited liability company (LLC) ... 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 ... Pass-through tax means the owners of a company pay taxes while the entity itself does not pay taxes. The owners claim the income of the company on their ... BUSINESSES · INDIVIDUALS · TAX PROFESSIONALS · GOVERNMENTS · UNCLAIMED PROPERTY. Pass-Through Entity-Level Tax: Tax-Option (S) Corporation General Election ... Pass-through taxation is a major benefit for Texas S-corporations. This tax structure allows business income to "pass through" directly to the shareholders, ... LLCs: LLCs also have pass-through taxation, but they have more flexibility than S corps. An LLC can choose to file taxes as a sole ... Small businesses generally organize as either a regular C corporation or as a “pass-through” entity. ... S corporations, the business pays the ... 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 ...