S-Corporations

For tax purposes, an S corporation elects for the objective of a pass-through entity such as a partnership or a sole proprietorship. S corporations are not subject to double taxation because corporate incomes are practically “passed through” direct to shareholders who in turn include their income through their individual tax returns.

S Corporation industry

S Corporation industry

It is generally easier for an S corporation when doing accounting compared to a C corporation. Among the restrictions of an S corporation includes not having more than 100 stock holders with each giving their consent, owning only one class of stock, not having more than 25% of the income can be “passive income” such as interest, rental income, etc.

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