C Corporation versus S Corporations
When you choose to incorporate a business, you do need to consider the "C corporation versus S corporation" question. The right choice can save you both money and headaches...
Accordingly, in the short articles below I provide you with a bird's-eye view of how C corporations and how S corporations pay taxes and of the unique benefits that each status confers. I also provide information how you can convert from C corporation status to S corporation status and vice versus.
Note: An S corporation is called an S corporation because the rules for making the S corporation election are specified in Subchapter S of the Internal Revenue Code. Regular corporations that haven't made an S election are sometimes called C corporations because the rules for taxation of regular corporations are specified in Subchapter C of the Internal Revenue Code.
- Example of C corporation tax calculation
- Example of S corporation tax calculation
- Big benefits of operating as a C corporation
- Big benefits of operating as an S corporation
- Converting from C corp to S corp status and vice versa
Additional Small Business Corporation Tax Resources
I've tried to supply lots of good, free general small business tax planning advice at this website. But I also sell three downloadable e-books (see below) that provide more specialized and powerful small business tax planning advice and commentary. If you're just starting out and cash flow is tight, you probably don't need (yet) the sort of information covered in these resources. But if your business is already profitable or about to become profitable, these guides truly should save you big amounts of business tax. But enough pushy selling...
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