Unveiling the Hidden Potential of Pass-Through Corporations A Blueprint for Success

Sole-proprietorships, LLCs, S corporations, and partnerships are “pass-through” entities, meaning they don't pay tax at the company level. An S corporation is a corporation that elects to be taxed as a pass-through entity. Income, losses, deductions, and credits flow through to the shareholders. 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 ... An S corporation's tax items generally pass through to shareholders on a pro rata basis and are reportable by S corporation shareholders in the ... In a stock transaction for an S-corporation, the buyer acquires the ownership share of the company from the seller(s) and becomes the legal ... 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 ... An S corporation is merely an incorporated manufacturer, distributor, or contractor that has chosen to be treated as a partnership for tax purposes. It offers ... 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 ... S corporations and partnerships are considered pass-through entities for tax purposes. But what exactly does that mean? Pass-through businesses include sole proprietorships, partnerships, limited liability companies and S-corporations.