May 2016 Archives

S corporations are a creature of the Internal Revenue Code. They are corporations which have timely filed an S election with the IRS to be treated as a "pass through" entity; meaning that they generally pay no corporate-level federal income tax. The federal income tax attributes flow through to the shareholders of the corporation. Most small business entities are "pass through" entities-either S corporations or limited liability companies, taxed as partnerships or sole proprietorships.