Categories: Ratio

What is an S Corporation? An Overview of Taxes & Benefits

An S Corporation is a type of corporation that is designed to offer certain tax advantages over regular corporations. An S Corporation is required to elect a status with the US Internal Revenue Service (IRS), which provides them with many of the same advantages that a traditional corporation enjoys, such as reduced taxes on corporate income, along with protection from personal liability for the company’s debts and liabilities. As an S Corporation, profits are only taxed at the individual level and are not subject to double taxation, meaning business income is not subject to corporate income tax. In addition, losses incurred in the operation of the business can be deducted from individual incomes.

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