S-Corporations are kind of like a less formal version of C-corporations. S-Corporations provide investment opportunities and that coveted limited liability protection. But, unlike a C-Corporation, S-Corporations only have to file taxes annually and they are not subject to double taxation. Is an S-Corporation the right entity type for you? This is a great question to explore when starting a business, or changing the structure of your existing business, because of the difference in taxes, the number of shareholders and asset protection.

The S-Corporation is perhaps one of the most popular business entities that we form. The S-Corporation may have up to 100 shareholders but it may only be owned by individuals. The advantages of the S-Corporation are as follows: • The S-Corporation is easy to form. • Provides limited liability in that the individual owners are only liable up to the amount of their investment. • The S-Corporation provides a means for passing ownership in a business to your family. • The S-Corporation does not pay tax. • The individual owners may take part of the company profits as dividends instead of receiving all of their monies as income.

Proper formation and management of an S-Corporation can ensure you maintain the proper tax benefits and limited liability. Contact Ingersoll Firm if you need help establishing or maintaining an S-Corporation. We have the expertise to keep you in compliance while maximizing your benefits.