Basic Features Of An S Corporation

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The decision to be an S-Corp enables a business to organize like any other corporation, but to receive special tax treatment. S-Corps are taxed like partnerships. This means that each item of income and expense is taxed at an individual level, not at the corporate level. The tax passes through to the shareholders and essentially avoids what is called double taxation. S-Corp option is especially attractive to new business investors. This is because new businesses often generate substantial operating losses. These losses simply pass through to the investors, who can use them as deductions from other income. Of course, there are certain limitations. For more information about S-Corp, its benefits and its limitations, contact an attorney in your area today

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