A C Corporation is the right type of business if you are looking for flexible profit-sharing among owners or want the company earnings to stay within your business and grow. The change to an S Corporation can be sought by filing the “Form 2553” with IRS in accordance to Sub-chapter S of the Internal Revenue Code.Ī C Corporation or C Corp is considered as a separate taxpayer and the income as well as expenses are taxed to the corporation. A Nevada C Corporation becomes an S Corporation when a special tax treatment (pass-through taxation) is sought after with the consent from all shareholders of the C Corporation. Initially, when a corporation is chartered in the state of Nevada, it is given the status of a Corporation C. The cost for setting up S Corporations and LLC are almost the same, although a key difference lies in owners being affected by employment taxes. LLCs and S Corporations are commonly used by small business startups as they will enable you in growing your business as well as adding new owners. LLCs, C corporations, or S corporations provide personal liability protection.
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