An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
Other articles related to "s corporation, s corporations":
... S corporations pay a franchise tax of 1.5% of net income in the state of California (minimum $800) ... consideration when choosing between a limited liability company and an S corporation in California ... high-gross-revenue, low-profit-margin businesses, the LLC franchise tax fees may exceed the S corporation net income tax ...
Famous quotes containing the word corporation:
“What I am anxious to do is to get the best bill possible with the least amount of friction.... I wish to avoid [splitting our party]. I shall do all in my power to retain the corporation tax as it is now and also force a reduction of the [tariff] schedules. It is only when all other efforts fail that Ill resort to headlines and force the people into this fight.”
—William Howard Taft (18571930)