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S Corporation Benefits

Forming an S corporation business or looking to incorporate a company can have some advantages at tax time. Members of an LLC are subject to employment tax on the total income of the business, however with S corporation income, only the wages of each shareholder who is an employee are subject to employment tax. Shareholders who also work for the company must pay themselves reasonable compensation.

The key difference between an S corporation and a C corporation is that with an S Corp, your profits and losses can pass through to the personal tax returns of the company’s shareholders. As a result, only the shareholders are taxed, and not the business itself.

If you've picked up an S corporation form and are ready to apply, let InsideUp help you find corporate law services who can guide you through the process.

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InsideUp is an online business community of business incorporation experts and resources. We allow you to connect with service vendors who compete for your business, and give you free access to unique content and tools.

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