{"id":312,"date":"2015-08-06T21:19:18","date_gmt":"2015-08-06T21:19:18","guid":{"rendered":"http:\/\/amerilawyer-blog.local\/?p=312"},"modified":"2017-03-28T20:47:32","modified_gmt":"2017-03-28T20:47:32","slug":"save-money-on-taxes-with-s-corporation-status","status":"publish","type":"post","link":"https:\/\/www.amerilawyer.com\/blog\/business\/save-money-on-taxes-with-s-corporation-status","title":{"rendered":"Save Money On Taxes With S Corporation Status"},"content":{"rendered":"<p><strong>An<span style=\"color: #000000;\"> <a style=\"color: #000000;\" href=\"http:\/\/www.amerilawyer.com\/form_a_sub_chapter_s_corporation\/sub_chapter_s_corporation.htm\" target=\"_blank\">S Corporation<\/a> <\/span>receives the benefit of being treated like a partnership<\/strong><\/p>\n<p>An S and C corporation are essentially the same type of entity except for how they are taxed. C corporations will pay income taxes on their own return. In most small C corporations the owners are paid out through salaries and fringe benefits, leaving no corporate profit and therefore no corporate taxes. However, if the C corporation pays dividends, then it will be taxed as part of corporate profit. This is referred to as double taxation.<\/p>\n<p>On the other hand, an <span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"http:\/\/www.amerilawyer.com\/form_a_sub_chapter_s_corporation\/sub_chapter_s_corporation.htm\" target=\"_blank\">S corporation<\/a><\/span> does not pay taxes itself. Any profits are paid on the individual level. This is referred to as pass-through taxation. However, the S corporation has additional restrictions on who can be a shareholders, the amount of shareholders, and the classes of stock.<\/p>\n<p><strong>Making the S corporation election<\/strong><\/p>\n<p>To save on taxes, C corporations and single member<span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"http:\/\/www.amerilawyer.com\/form_a_limited_liability_company\/limited_liability_company.htm\" target=\"_blank\"> LLC&#8217;s<\/a> <\/span>are encouraged to make the S corporation election. Multi-member LLC&#8217;s and partnerships will receive pass-through tax treatment by default. The election should be made at the time of business formation. Waiting to make an election can cause non-recognition of the S corporation status which will have negative consequences for the business\u2019s tax liability. Most importantly, the election is more then just completing a form. The proper language has to be included in the Articles as well.<\/p>\n<p>To understand how an S corporation election can save you money, speak to a one of our attorneys by calling 800-743-9900 or visit our <span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"http:\/\/www.amerilawyer.com\/form_a_sub_chapter_s_corporation\/sub_chapter_s_corporation.htm\" target=\"_blank\">website<\/a> <\/span>today!<\/p>\n","protected":false},"excerpt":{"rendered":null,"protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,72,6,49],"tags":[],"class_list":["post-312","post","type-post","status-publish","format-standard","hentry","category-business","category-entrepreneur","category-legal-services","category-llc"],"_links":{"self":[{"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/posts\/312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/comments?post=312"}],"version-history":[{"count":0,"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/posts\/312\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/media?parent=312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/categories?post=312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.amerilawyer.com\/blog\/wp-json\/wp\/v2\/tags?post=312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}