The terms C-corp and
S-corp pertain to federal taxation chapters in the Internal Revenue Code.
Relief from this double-taxation is available for eligible corporations by filing an election with the IRS to be taxed as an "
S-corp."
It finds that banks with higher risk and banks that are not owned by a BHC have higher capital ratios, but that no economically significant relationship exists between capital holdings and
S-corp banks.
The Senate is poised to begin debate on its own student loan bill the week of May 7; however, their version of an extension would be funded by raising taxes on some
S-Corps. S.
For
S-corp. owners, the only way to vary compensation paid to principals owning equal shares of business is to fix their salaries at different levels.
"While S-elected LLCs are not new, many business owners believe that they have to choose between the tax incentives of a
S-Corp and the ease of an LLC.
* How do tax practitioners explain to their clients (who own an
S-Corp) the application of two seemingly contradictory rules, with one rule being that employers must pay and withhold employment taxes and a different rule being that distributions from S-Corporations to its shareholders are not subject to federal employment taxation?
Grog Jolivette (R-Hamilton) was expanded in the Senate and approved in the House to include, among others, changes in the taxation of
S-Corp. income at the municipal level.
Although it is fairly easy to move from an
S-Corp to a C-Corp, doing the reverse is more difficult.
For an
S-corp shareholder with insufficient basis to deduct corporate losses, a distribution from a qualified plan (or an IRA) could be loaned to the corporation and free up at-risk losses with the only tax cost being the 10-percent penalty.
Made by La Isha (an
S-Corp), Greenwood Village, (303) 601-7284, www.la-isha.com.
Health Insurance Deductibility: Health insurance expenses for
S-corp owners and Schedule C filers should be fully deductible as a business expense with no limits.
