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Thinking of incorporating your business? Discover the benefits of electing S-Corp status, including tax savings, liability protection, and growth opportunities.
What is an S-Corporation?
An S-Corporation (S-Corp) is a business structure that provides liability protection like an LLC but offers significant tax benefits. Business owners can save money on self-employment taxes while still enjoying the flexibility of a pass-through taxation model.
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Benefits of an S-Corporation Tax Savings: Owners can pay themselves a reasonable salary while taking additional earnings as distributions, reducing self-employment taxes. Liability Protection: Your personal assets are shielded from business debts and legal claims. Credibility & Growth: S-Corp status can enhance your business’s credibility and make it easier to secure loans and investments. .
How to Set Up an S-Corp
To form an S-Corporation, file Form 2553 with the IRS after registering your business as an LLC or Corporation. Work with a tax professional to determine if an S-Corp is the best choice for your financial situation, and ensure you comply with IRS regulations.