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S Corporation

S-Corporation

S-Corp Summary

Idaho S-Corporation General Summary

While S corporations are corporations for purposes of state law, they are taxed similarly to partnerships for federal and state income tax purposes. There are several tax advantages of an S-Corporation for high earners who are interested in taking out their profits regularly. Since an S-Corporation is a flow-through for tax purposes, unlike the traditional C-Corporation, shareholders are able to take advantage of the new 20% 199A Deduction.

S-Corporation

S-Corp Shareholder Facts

Idaho S-Corporation Facts

  • You must pay yourself and other working shareholders a “reasonable salary.” This is an issue that is often audited.
  • You pay 15.3 percent self-employment taxes on your salary.
  • S-Corporation is not its own entity (with natural human rights), it does not pay its own taxes.
  • It is a “pass-through” entity, also known as a disregarded entity. The IRS doesn’t recognize the business as its own entity that pays taxes at the corporate level.
  • Any left-over profits will automatically be passed-through to shareholders by a disbursement.
  • You could potentially be required to pay taxes on a disbursement regardless of whether you actually received the money. This happens for many reasons, but most common is money being allocated for growth, general operations, and payroll.
  • The company is owned by shareholders, who elect directors.
  • The directors set a vision for the corporation and are responsible for the management of the corporation.
  • The officers and managers hired by the directors are responsible for carrying out the vision on a day-to-day basis.
  • You have maximum 100 shares to own or sell. These shares can only be sold to individuals or a single member LLC being taxed as a sole proprietor, US. Citizen or Permanent US. Resident.
  • Even though S-Corporations are strict about who owns their shares, it has little rules about what it can own. Meaning that an S-Corporation can own LLC’s, and other C-Corporations.
  • You must create and maintain corporate bylaws.
  • You are required to have recorded minutes and meetings.

 

S Corporation Packages

 

S Corp Basic

Articles Of Incorporation

Federal Tax ID Number (EIN)

Self-Customizable Corporate Bylaws & Forms

IRS S-Corporation Election Filing

Electronic Documents by Email

All Filing Fees Included

Shipping Fees of Documents Included

S Corp Deluxe

Articles Of Incorporation

Federal Tax ID Number (EIN)

Self-Customizable Bylaws & Forms

Certificate of Existence

One Assumed Business Name "DBA"

199A 20% Business Income Tax Deduction Book

IRS S-Corporation Election Filing

Expedited Electronic Documents by Email

All Filing Fees Included

Expedited Filing Services

High Quality Linen/Cotton Documents

Shipping Fees of Documents Included

Comparison Chart

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