Form 1120S is the tax form S corporations use to file their federal income tax return (not to be confused with Form 1120 for C corporations). Every S corp. needs to file one, including LLCs that are taxed as S corps. S corps use this tax form to report any profits, losses, and deductions for…
This article will help you understand how to form an S Corporation in the United States of America. We will show you a step-by-step process of how to create an S Corporation in USA and all the documents and requirements needed. Without any further ado, let’s begin: What is an S Corporation? 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 status allows the taxation of the company to be similar to a partnership or sole proprietor as opposed to paying taxes based on a corporate tax structure. Please note that S…
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, S Corporation owners are eligible for unemployment insurance, however depending on some crucial factors. The IRS has officially stated that shareholders, who work for S corporations, even if the shareholder is the only owner or worker, are considered employees for purposes of the Federal Unemployment Tax Act. It simply means that a shareholder can…
Do you want to change your business entity from sole proprietor to S Corporation? If YES, here is 5-step guide on how to convert sole proprietorship to S Corp. For most new business owners, entrepreneurship is exciting, rewarding, and at times utterly confusing. From the very beginning, few people who wish to start a business…
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…