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) ... one factor to be taken into consideration when choosing between a limited liability company and an S corporation in California ... low-profit-margin businesses, the LLC franchise tax fees may exceed the S corporation net income tax ...
Famous quotes containing the word corporation:
“It is truly enough said that a corporation has no conscience; but a corporation of conscientious men is a corporation with a conscience.”
—Henry David Thoreau (18171862)