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	S Corporation
		An "S Corporation" is a corporation which has elected to have its profits pass through to its shareholders, in the same manner as a partnership or sole proprietorship.
		A corporation must elect to be treated as an S Corporation no later than March 15th of the tax year to which the election is to be applied.
		The shareholders of an S Corporation are limited in the amount they can deduct as a result of business losses, in rough terms to the amount of their "basis" or investment in the corporation.
	www.expertlaw.com /library/business/s_corporation.html (820 words)

	S Corporation - Wikipedia, the free encyclopedia
		In the United States, an S Corporation or "S-Corp" is a form of corporation that meets the IRS requirements to be taxed under Subchapter S of the Internal Revenue Code.
		Instead, the shareholders in the S corporation pay income taxes on their proportionate shares, called distributive shares, of the S corporation's profits.
		If a corporation that has elected to be treated as an S Corporation ceases to meet the requriements (for example, if as a result of stock transfers, the number of shareholders exceeds 100), the corporation will lose its S Corporation status and revert to being a regular C corporation.
	en.wikipedia.org /wiki/S_Corporation (493 words)

	S Corporation Law and Legal Definition - USlegalforms.com (Site not responding. Last check: 2007-10-18)
		An S corporation must have a maximum of 75 shareholders who are individuals (though certain types of trusts and estates may qualify).
		Once a corporation makes the Subchapter S election to be an S corporation, profits and losses are passed through the corporation and are reported on the individual tax returns of the respective shareholders of the S corporation.
		If the S corporation is not a calendar-year taxpayer, the election must be made within 75 days of the beginning of the corporation’s tax year.
	www.uslegalforms.com /legaldefinitions/s-corporation (1088 words)

	S Corporation (Site not responding. Last check: 2007-10-18)
		It will often be advantageous for your corporation to operate as an S corporation in its early years, when losses can be passed through to shareholders, or when income is not so great as to push the shareholders into higher tax brackets.
		The tax law regarding S corporations is very complex and you should expect to pay substantial additional legal or accounting fees to your tax adviser, compared to what would be necessary with a regular corporation.
		Certain built in gains of an S Corporation (which is converted from a C Corporation) may be taxed to the corporation and the shareholder for federal tax purposes.
	www.pro1040.com /s_corporation_tax_reductions.htm (868 words)

	LLC vs S Corporation
		LLC vs S Corporation- An LLC is not a separate tax entity like a corporation; it is what the IRS calls a pass through entity, like a partnership or sole proprietorship.
		S Corporation: To qualify, generally, the corporation must have a maximum of 75 shareholders who are individuals.
		With only a few exceptions, under the Subchapter S election for taxation as a partnership the S corporation pays no income taxes and corporation income or loss is passed through direct to the stockholders.
	www.residual-rewards.com /llcvsscorp.html (1191 words)

	S Corporation Taxes
		The corporation must be a domestic corporation (a corporation organized under the laws of the United States, a state, or territory that is taxed as a corporation under local law).
		The corporation may not have any shareholder that is a nonresident alien or nonhuman entity (such as other corporations or partnerships), unless the shareholder is an estate or trust that is authorized to be an S corporation shareholder under the tax laws.
		Prior to 1997, an S corporations could not have subsidiaries, and could not be a member of an affiliated group of corporations.
	taxguide.completetax.com /text/Q10_2029.asp (376 words)

	Subchapter S Corporation, advantages, disadvantages,s corp (Site not responding. Last check: 2007-10-18)
		Subchapter S Corporation is defined as a corporation with 75 or fewer shareholders,that has elected and qualified for a special tax status with the Internal Revenue Service (IRS).
		The main advantage associated with the S Corporation is that the income passes through to the shareholders, therefore avoiding a perceived double taxation of a C-Corporation.
		An "S Corporation" is a corporation that elects to be taxed under Subchapter S of the Internal Revenue Code (enacted in 1958 and periodically amended) and receives IRS approval of its request for Subchapter S status.
	www.residual-rewards.com /scorporationadvantagesdisadvantages.html (742 words)

	S Corporation Overview
		Shareholders of an S corporation generally may deduct their share of the corporation's net operating loss on their individual tax returns in the year the loss occurs.
		This pass-through of an S corporation's losses to its shareholders makes the S corporation form particularly suitable for start-up businesses that are expected to generate losses during their initial stages.
		An S corporation that was once a C corporation may be subject to one or more of three separate taxes (e.g., the "built-in gains" tax).
	www.hansontax.com /page16.html (683 words)

	S Corporation,forms; about s corporations, llcs
		"S Corporation" means nothing more than a regular corporation which elects to be taxed under subchapter S of the Internal Revenue Code.
		Talk about s corporations or "S Corporation forms", as if there were a separate legal entity of that name, is thus improper, since State corporation laws make no distinction between the two.
		There are tax advantages to S corporations (for those who are able to qualify for such treatment) which are similar to the tax advantages of limited liability corporation (also a misnomer - the proper term is limited liability company).
	www.4inc.com /s-corporation.htm (295 words)

	Scrutiny of S corporation distributions.
		Subchapter S corporations are increasingly reducing the compensation of their shareholder/employees and are raising their dividend distributions instead.
		While the business activities of the corporation were handled exclusively by the taxpayers, the stock of the S corporation was held equally among the taxpayers and their eight children.
		Roob was inadequately compensated for the services he performed for the S corporation, and reallocated dividends from the children to the taxpayer to reflect the amount of undercompensation.
	www.nysscpa.org /cpajournal/old/13928348.htm (4182 words)

	Questions Answered About S Corporation, C Corporation
		A corporation is created when proper articles of incorporation (or the equivalent under the laws of a particular state) are filed with the proper state authority, and all fees are paid.
		An S corporation is a corporation which has elected a special tax status with the IRS, which allows the corporation's income to be treated like the income of a partnership or sole proprietorship, with the income "passed-through" to the stockholders, whose individual tax returns report the income or loss generated by the S corporation.
		To be an S Corporation, a corporation must (at this time) have only one class of stock and less than 35 stockholders, who must be individuals, estates or certain qualified trusts, and consent in writing to the S corporation election.
	www.4inc.com /incfaq.htm (822 words)

	Non-liquidating S corporation distributions.
		Under the partnership rules, however (unlike the S corporation rules), for any taxable year, a partner's basis is first increased by items of income, then decreased by distributions, and finally is decreased by losses for that year.
		If a current S corporation was an S corporation for its last taxable year prior to the October 10, 1982, effective date of the SSRA of 1982 and it had a PTI account, there is a method of distributing that account tax-free.
		An S corporation which is distributing appreciated property, reduces the AEP account by the distributed property's adjusted basis and the recognized gain generated by the distribution (i.e., the property's fair market value).
	www.nysscpa.org /cpajournal/old/14465867.htm (3299 words)

	Incorporations Library - S Corporations
		A traditional corporation, known as a C-corporation, is taxed as a separate entity, leading to double taxation of corporate income and dividends to shareholders.
		An S-corporation, on the other hand, is a corporation that elects to be treated as a pass-through entity (such as a sole proprietorship or partnership) for tax purposes.
		Since all corporate income is "passed through" directly to the shareholders who include the income on their individual tax returns, S-corporations are not subject to double taxation.
	www.legalzoom.com /law_library/corporations/s-corp.html (309 words)

	S Corporation Election Filing
		For an existing C corporation electing S status, the election must be filed during the tax year preceding the first tax year the S election is to be effective, or on or before the 15th day of the third month of the initial S year.
		Care must be taken to ensure that the S election is not filed before the corporation is in existence (i.e., before the charter or articles are registered with and authorized by the Secretary of State in the state of incorporation).
		The registered owner of S corporation stock might not be the beneficial owner (i.e., the person or entity that controls the stock or reaps the benefits of stock ownership).
	www.fdcpa.com /Tax/0206TaxNewsSCorporationElectionFiling.htm (975 words)

	S Corporation - Business Law and Insurance Articles
		S Corporation status gives you the liability protection of a corporation, and allows you to pay taxes on the same basis as a sole proprietor or partnership, that means you pay tax at the personal rate and your profits are your salary.
		S Corporations limit the number of corporate shareholders to 75, stipulate that all shareholders be U.S. citizens, and require that shareholders be individuals rather than other corporations or estates.
		On the downside, S Corporations are limited in terms of the number of deductions for fringe benefits such as heath insurance, group term life insurance, deferred compensation plans, and others.
	www10.americanexpress.com /sif/cda/page/0,1641,15747,00.asp (508 words)

	S Corporation Status
		Corporations may elect to register in New Jersey as a Sub-Chapter S corporation.
		Since the S corporation status for federal purposes does not automatically flow through for New Jersey state purposes, you must apply for S corporation status in this state and receive approval of the election.
		Once an election is made and accepted, a corporation may remain a New Jersey S corporation as long as it is a Federal S corporation.
	www.state.nj.us /treasury/revenue/scorp.htm (388 words)

	s corporation, advantages, disadvantages, s corp
		Eligibility for S corporation tax status is based on compliance with IRS regulations regarding the number and characteristics of stockholders, type of stock issued, and other characteristics specified in the regulations.
		If the corporation is newly formed, small, or has a limited record of credit use, it's likely that a lender will require personal guarantees by one or more officers or stockholders before approving a credit application received from the corporation.
		Moderate legal costs are incurred in setting up a typical S corporation and annual costs are incurred for stockholders meetings, tax return preparations, and preparing other yearly reports and summaries as needed for management and as desired by stockholders.
	www.smallbusinessaid.net /scorporationadvantagesdisadvantages.html (1037 words)

	S Corporations
		An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation.
		Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income.
		On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss.
	www.irs.gov /businesses/small/article/0,,id=98263,00.html (134 words)

	s corporation
		S corporation tax implications are that income or loss, including capital gains, pass through to the stockholders, and is treated as income to the receiving individuals, like a partnership.
		S corporation income passed through to stockholders and is subject to state and federal income tax, but is not subject to self-employment tax when employee-stockholders receive adequate compensation salaries.
		Pay of corporation employees for a S Corporations are subject to payroll taxes in the same manner as is the case for employees in any other type of economic activity.
	asktaxmoms.com /scorp (551 words)

	S Corporation
		Thus, an S corporation "generally will not be liable for federal income tax." If losses are incurred during the startup period (or any other period), these losses can be deducted each year from the shareholders' individual tax returns.
		The maximum Federal income tax rate for C corporations is 34 percent for taxable income up to $10.0 million, whereas the maximum tax rate on S corporation income is now the maximum individual rate of 39.6 percent.
		At the other end of the range, the Federal tax on corporate income of $100,000 is $22,250 for a C corporation, whereas the incremental tax on this income added to other income of the shareholders in an S corporation could be as high as $39,600 if the shareholders are already in the maximum tax bracket.
	www.businessforum.com /scorp.html (668 words)

	S corporation or LLC?
		Since corporations, partnerships, and LLCs cannot generally own stock in an S corporation, using that form of entity for a start-up business may limit the field of potential investors in the business.
		The ability of an S corporation to attract potential investors is further limited by the fact that all income, losses, tax items, and distributions must be allocated between S corporation shareholders based upon their stock ownership.
		Neither an S corporation or an LLC is the right choice in all cases, and assisting a client in making a choice for a particular business can be difficult and time consuming.
	www.alberty.com /newsletter_fall01.html (624 words)

	S Corporation (Site not responding. Last check: 2007-10-18)
		Pass-Through Taxation: The S Corporation is what’s known as a “pass-through entity.” This means that while you still receive all of the benefits of being incorporated, the income you generate through your business “passes through” to your personal tax return.
		S Corporations come with a tax advantage versus an LLC as it relates to how income is taxed.
		An S Corporation is known as a “Subchapter S” because it is simply a special designation of a typical corporation.
	www.newbizcentral.com /S-Corporation.htm (732 words)

	S Corporation Basics (Site not responding. Last check: 2007-10-18)
		In addition, owners of S corporations who don't have inventory can use the cash method of accounting, which is simpler than the accrual method.
		The stock of S corporations is freely transferable, while the interest (ownership) of LLCs is not.
		This free transferability of interest means the shareholders of S corporations are able to sell their interest without obtaining the approval of the other shareholders.
	www.entrepreneur.com /article/0,4621,321703,00.html (828 words)

	S Corporation information (Site not responding. Last check: 2007-10-18)
		S Corporations are one of two business entities that allow pass-through tax treatment, thus avoiding the double taxation associated with standard C corporations.
		Commonly used by small business proprietors, the S Corporation pays no corporate taxes, but instead passes profits and losses directly to its owners (the stockholders) who declare such profits and losses as part of their personal taxable income.
		One advantage of an S Corporation is that it can have a single owner and not have associated self employment taxes.
	www.migratetousa.com /s_corporation.html (279 words)

	S Corp - Sub Chapter S Corporation - Incorporate at MyCorporation.com (Site not responding. Last check: 2007-10-18)
		An S Corporation begins its existence as a general, for-profit corporation upon filing the Articles of Incorporation at the state level...
		An S Corporation begins its existence as a general, for-profit corporation upon the filing of Articles of Incorporation at the...
		S Corporation shareholders are taxed based on their pro-rata share of corporate income regardless of whether the...
	www.mycorporation.com /s-corporation (257 words)

	Glossary: S Corporation
		- An S Corporation is a pass through entity for tax purposes, like a partnership whose income or losses "pass through" to its shareholders' personal tax returns in proportion to each shareholder's percentage ownership of the S Corporation (their distributive share).
		The S Corporation is not subject to corporate level income tax.
		To convert from a C Corporation to an S Corporation, you must meet the same requirements as a newly formed corporation electing S Corporation status.
	www.corporateboardminutes.com /glossary/scorporation.shtml (576 words)

	S Corporation Info
		S Corporation status is often beneficial to small business owners for several reasons.
		The operational control of a corporation lies in the board of directors, which is elected by the stockholders.
		With an S Corporation, you will be able to choose between using dividends paid to shareholders or a salary to pay individuals.
	www.lawyer-locater.com /Corporations/109 (606 words)

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