The Subchapter S corporation
and LLC by IRS code is supposed to be a pure flow through of profits and not taxed like a C corporation, which is taxed at the corporate level and then a dividend tax if dividends are made.
A Subchapter S Corporation
is a closely held entity (no more than 100 shareholders) that makes a tax election so as to avoid double taxation, once at the corporate level and once at the shareholder level.
Many of these businesses were incorporated 20 to 30 years ago when limited liability corporations (LLCs) did not exist or were unpopular and Subchapter S corporations
had other disadvantages.
Another Subchapter S Corporation
Tries to Follow in Footsteps
Although the LLCs combination of limited liability and tax savings is in some ways similar to the benefits afforded by a Subchapter S corporation
or a limited partnership, the LLC is in many respects a very distinct and more flexible structure rather than the simple mixing of corporate benefits with partnership tax treatment.
By qualifying as a Subchapter S corporation
, Hemet Bancorp would substantially eliminate its corporate level income tax liability.
The company is organized as a Subchapter S corporation
, which limits its number of shareholders to 75, and taxes them in a manner similar to a partnership.
1502-32 is adapted from the method of calculating basis adjustments for partnership interests and shares in a Subchapter S corporation
Lawer Corporation, also known as Nelson Adams, a privately-held subchapter S corporation
with headquarters in Corona, California.
significantly liberalizes subchapter S corporation
rules, clarifies certain worker classification rules and simplifies and expands retirement plan benefits.