Friday, October 24, 2014

s corporations are similar to partnerships in the corporate tax is paid true or false

Question

s corporations are similar to partnerships in the corporate tax is paid true or false



Answer

As a Franchise Attorney I can say the following about S corporations. They are basically a conduit where the profit (or loss) flows through to the individual shareholders, so there is no separate corporate tax paid. Of course, the S corporation must make the proper election and file the necessary paperwork when it is formed for this to happen. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation



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