Chen & Fogg
Certified Public Accountants
Subchapter S is a classification that can be used by a corporation or a limited liability company if you meet the IRS’ requirements. We can help you determine if this election makes sense for you, and how to use it to your greatest advantage.
The IRS itself can give the best answer to this:
“S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow- through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.”
First, the chances for an audit are lower with this type of return, which is not an immediate savings, but could be one in the long run. The company’s losses also become deductible to both the owners and shareholders. Deductions for employment taxes also become easier to manage.
Just like any type of return, of course you could file the return yourself. But if you read the above blurb from the IRS, you get a feel for all that is involved in just describing what the return means before even getting into the mechanics of an actual return.
Teaming with Chen & Fogg CPAs, though, will put experience on your side. We will guarantee that you are getting the most out of your return and that your return is accurate. We have handled these type of returns in the past and keep ourselves up to date on the latest tax laws and regulations. So if you are ready to put this experience to work for you, please contact us today.
6300 W. I-40 Suite 102A
Amarillo, Texas 79106
Have Any Questions? Call (806)290-0850
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