What is an S corporation (S corp)? An S corp is an IRS tax status (Subchapter S) for LLCs and corporations that offers income tax savings on distributions.
An S corp, also known as an S subchapter, is one type of legal business structure common among small business. Alimited liability company (LLC)is another. An S corp with 100 shareholders or less has the benefit of incorporation while being taxed as a partnership. Both S corps and LLCs a...
The election of Subchapter S tax status allows the profits of the corporation to pass through the entity to the individual shareholders and, accordingly, is only taxed once. Thus one of the benefits of an S corporation in Delaware is that it has all ofthe benefits of a Delaware corporationbu...
An S corporation is a variation of a corporation within Subchapter S of Chapter 1 of the Internal Revenue Code. To be an S corporation, your business needs to be set up as a corporation by filling and submitting documents like the Articles of Incorporation or Certificate of Incorporation to t...
So, when you hear someone talking about an S Corporation, understand that it is not a business entity in its own right; it is simply a C Corporation or an LLC that the IRS has granted a particular tax status. It gets its name from the Subchapter S tax code under which it’s governed...
Flexible membership:LLC members (owners) can be individuals, partnerships, trusts, or corporations, and there is no limit on the number of members. S corporations (which is a corporation that has elected to be taxed as a pass-through entity under Subchapter S of the Internal Revenue Code) ar...
In the eyes of the IRS, all corporations automatically begin as C corporations when they are formed. A C corporation may convert to an S corp by filingIRS Form 2553, Election by a Small Business Corporation, with the IRS if it so chooses. There may also be state forms to file to obtai...
What is an S corporation (S corp)? An S corporation, or S corp, is a modified form of corporation under Subchapter S of Chapter 1 of the US Internal Revenue Code, which is not subject to federal corporate tax. It is also a tax status for other business entities; for example, limited...
S Corp FAQs 1 What Does S Corporation Stand For? Unfortunately, the "S" in S Corp doesn't stand for "Super" or "Splendid." Instead, it's referencing Subchapter S of the Internal Revenue Code. (We still think S Corps are super and splendid, though.) 2 Why Would You Choose an S ...
A Qualified Settlement Fund, or QSF, is a fund, account, or trust under applicable law created to hold settlement proceeds involving multiple claimants. A QSF is a useful settlement tool to help ensure that proper client counseling can occur while givin