Las Vegas Business Law Attorney
S corporations have impressive tax benefits that still provide business owners with a corporation type of liability protection. Income and losses are passed through shareholders and are to be included on their individual tax returns. With this process, only one level of federal taxes is to be paid.
In addition, the S corporation owners that do not have inventory are able to use the cash method for their accounting purposes, which ends up being simpler than the accrual method. With this method enforced, income is then taxable when it’s received and received and has deductibles when expenses are paid.
Certain conditions must be met for a corporation to be eligible for a subchapter S selection. For starters, the corporation cannot have more than 75 shareholders, however, a husband and wife would only count as one shareholder. Only the following individuals are eligible to be shareholders:
- Certain trusts
- Individuals
- Tax exempt charitable organizations
- Estates
- Certain partnerships
- Other S Corporations, if they are the sole shareholder
If you or someone you know is struggling with their S corporation eligibility or other type of corporation issues, contact Dobberstein Law Group to schedule your consultation.
Discussing the next action for your case with a trusted Las Vegas Business Law Attorney can help you to understand what comes next.