Elliott & Davis | S-Corporations

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A corporation is a legal structure that exists separate from the owners of that business. There are many reasons to form a corporation, including:

Limited Liability

Reduced Tax Exposure

Increased Credibility

Perpetual Existence

In choosing a corporate form, you should consider the advantages and disadvantages of the two primary types of corporations, C-Corporations and S-Corporations.

One of the key features that distinguishes C-Corporations from S-Corporations is that, unlike C-Corps which are separately taxable entities, S-Corps are entitled to "pass through" taxation. C corporations file a corporate tax return reporting profits or losses, and must pay taxes at the corporate level on any profits. S-Corps, however, are not required to do so. This means that instead of paying corporate income tax in addition to personal income tax, the owners of the S-Corp only have to pay personal income tax.

The considerations involved in choosing a corporate form are often quite complex and the paperwork involved can be daunting. The attorneys at Elliott & Davis are committed to offering you customized service, clear communication, and peace of mind as we guide you through the process of forming your corporation.