Corporate Tax

We Know Corporations: S and C

The corporation is still the most common form of business structure. It offers liability protection, the ability to raise capital, and a defined set of procedures and rules to follow.

Corporations are required to file annual income tax returns. C Corporations pay income tax at the corporate level. Dividends are paid after-tax to stockholders. The C Corporation is its own entity, and its tax filings have no impact on the individual shareholder.

An S Corporation is created by requesting Subchapter S status from the IRS. The S Corporation files a tax return, but the income tax liability is paid by the shareholders proportional to their ownership. Shareholders receive Form K-1 and report the S Corporation’s income or loss on their individual income tax return. S Corporations are often used by closely held businesses, agricultural concerns, real estate companies, and small businesses. Tax related decisions for the corporation will affect the shareholders directly. We work in concert with our S Corporation clients and shareholders to minimize tax expenses and maximize benefits.

Free Corporate Tax Online Review