In US law, corporations are organizations authorized to act as a legal entity. US and state tax laws allow a special ‘S Corporation’ tax status that changes how corporate taxes are handled. The government taxes regular ‘C’ corporations directly on their profits, under corporation-specific laws. Individual income tax only applies to money that owners receive from the corporation, such as salaries and dividends. ‘S’ corporations do not pay taxes directly. Their profits or losses ‘pass through’ to the owners’ personal tax returns. This makes them similar to LLCs tax-wise. S status can be ‘elected’ by the shareholders, if the restrictions for S corp status are met. S corps can also un-elect S-corporation status, and revert to ordinary ‘C’ corporation taxes.
 

• Author
• Recent Posts

TitleTap

TitleTap provides turn-key websites and marketing tools like Video, Social Media Management, and Email Marketing for Title Agents and Real Estate Attorneys. Get more great marketing tips like this specifically relevant to Real Estate, Title Insurance, Mortgage Lending, and Law by subscribing or visiting our blog above.

Latest posts by TitleTap (see all)

• The 80/20 guide to local SEO for lawyers - September 8, 2022
• Small, Medium, & Solo Law Firm Reputation Management Best Practices - September 1, 2022
• When to hire a law firm digital marketing agency for your website vs. DIY - August 25, 2022