To have a full grasp of the tax advantages of an S Corp and C Corp, you have to clearly define S Corp and C Corp. What is an S Corporation? An S Corporation which is referred to as Small Business Corporation is a business elected for S Corporation Status through the IRS. This business…
A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Many companies, including most major corporations, are treated as C corporations for U.S. federal income tax purposes. C corporations…
Can a C Corporation own a S Corporation? If YES, how is it done? Here is everything you need to know about ownership of corporate entities. In the United States, before congress passed the 1996 act, S corporations generally were not allowed by law to be part of an affiliated group of corporations. The implication…
Are you torn between the choice of registering a C Corp or S Corp? If YES, here are differences and similarities between C Corporation and S Corp. Firstly, it is important to state that under IRS rules, the C corporation is the standard (or default) corporation. The S corporation is a corporation that has elected…
Yes, liquidation is a taxable event for both the shareholder and the corporation. A C corporation may liquidate by (a) paying off creditors and distributing the remaining assets in kind to the shareholders or (b) selling assets, paying off creditors, and distributing the remaining cash to the shareholders. Note that if the corporation distributes the…
Yes, C Corporations many times can facilitate 1031 exchanges with third party purchases or sellers by transferring assets within the corporate structure via non – taxable asset transfers, such as property distributions, dividends, and D reorganizations. What is a 1031 Exchange? A 1031 exchange, named after section 1031 of the U.S. Internal Revenue Code, is…
Do you want to know the best legal structure for business? If YES, here is a comparison between a sole proprietorship vs LLC vs corporation vs partnership. Choosing a legal structure for your business is one of the first decisions you have to make when you want to start a new enterprise. You have the…
Do you want to register a C Corporation but you don’t know the requirements? If YES, here are 10-step guide on how to start a C Corporation with little money. C corporations are complex business entities that have chosen to incorporate under Subchapter C of Chapter 1 of the Internal Revenue Code. What is a…
Do you want to dissolve a corporation due to debt or other reasons? If YES, here is a complete guide on how to dissolve a corporation legally in 7 simple steps. All over the world, businesses wind down by simply closing down on operations. However, when a business is dissolved, then it means that it…
What are the advantages and disadvantages of doing business as a public corporation? what are the pros and cons of taking a company public? Well, i suggest you read on to find out. Of what use is this article when I have no intention of taking a company public? This might be the thought running…