What is a corporation? Learn the types of corporations, corporate form, and the main advantages plus disadvantages of corporations, including...
Anonprofit corporationis a not for profit entity that is registered at the state level as a nonprofit corporation. The nonprofit corporation can register for tax-exempt status with the IRS as a 503(c). AC corpis a corporation that is taxed as a default corporation with the IRS. This type ...
Definition:An S-corporation is a C-corporation that has elected to be incorporated under Sub-chapter S. Sub-chapter S allows S-corporations to be treated like a partnership for tax purposes. A key note here is that S-corporation status is simply a tax designation. The company is still orga...
Hub Taxes What Is a Tax Break: Definition, Types, and How to Obtain One December 12, 2024Taxes are a near certainty in life, but what if you could reduce the amount you owe? Tax breaks allow you to do just that: Lower your taxable income and tax liability using federal government-...
The definition of income tax is the mandatory tax imposed by government entities onto businesses and legally employed citizens. In the U.S., income tax is collected and enforced by the Internal Revenue Service, or IRS. The IRS defines income tax levies on an individual basis, according to the...
What Is Tax Fraud? Definition, Criteria, Vs. Tax Avoidance Are you familiar with the terms “tax fraud” and “tax avoidance”? These terms are often used interchangeably, but they have distinct meanings and implications when it comes to financial matters. In this blog post, we will delve ...
The simplest tax definition is that they’re obligatory payments made to the government by individuals and businesses. This money pays for many of the services provided by the state, such as social security payments, defense, education, and transportation. ...
How Does Income Tax Work? In the United States, federal tax law is enforced and taxes are collected by the Internal Revenue Service (IRS). Regarding reportable and taxable income, deductions, credits, and other tax-related matters, the IRS has a complicated system of rules and regulations. ...
which also separate a company's assets from its owners, but with different legal structures and tax treatment. A newer type of organization is the B corporation (benefit corporation), which is a for-profit firm but different from C corps in purpose, accountability, and transparency, but aren’...
Aside from its tax status, an S corp is similar to any other corporation, orC corporationas they’re officially known. An S corp is a for-profit company, incorporated under and governed by the same state corporation laws. It offers similar liability protection, ownership, and management advanta...