Читать книгу Run Your Own Corporation - Garrett Sutton - Страница 39

• Must make the election (Form 2553) for IRS to consider an S corporation.

• Files IRS Form 1120S.

• Must use double-entry bookkeeping.

• All S corporations are required to file payroll tax and reporting forms for shareholders functioning as employees.

• Income and expense flow through to shareholders and are not taxed at corporation level.

• Tax elections are at S corporate level.

• Shareholders who function as employees must receive reasonable compensation (wages) and payroll taxes must be paid. Dividend distributions are not subject to payroll taxes.

• Profits flow through to shareholders and are taxed at individual levels (no double taxation).