What is an S Corp?
The S corporation is one of two types of corporations recognized by the Internal Revenue Service (IRS)—C corporation is the other. An S corp differs from a C corp in that it offers a special tax status with the IRS that allows the business to avoid corporate income tax (and thus double taxation on earnings). Shareholders in an S corp file individual tax returns and pay income tax on the profits they receive from the business.
S Corp Advantages
There are essentially three key benefits to starting an S corp:
S Corp Incorporation: how to set up an S Corp in California?
Registering and starting an S corp in California can be somewhat confusing, especially for new business owners who are balancing the many challenges and responsibilities that come with entrepreneurship. The easiest way to go about it is to have a tax professional do it for you. Click the link to see how David York’s Tax Service can get your business filed and functional in three easy steps.