S Corporation

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.

Read more about S CorporationAn Overview of S Corporations, Qualification For S Corporation Status, Taxation Issues

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S Corporation - Taxation Issues - California, New York City Additional Taxes
... 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 ...

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