S firms are firms that elect to cross company revenue, losses, deductions and credit score via to their shareholders for federal tax functions. Shareholders of S firms report the flow-through of revenue and losses on their private tax returns and are assessed tax at their particular person revenue tax charges. This permits S firms to keep away from double taxation on the company revenue. S firms are liable for tax on sure built-in features and passive revenue. To qualify for S company standing, the company should meet the next necessities: be a home company, have solely allowable shareholders, have not more than 100 shareholders, have one class of inventory and never be an ineligible company. To turn out to be an S company, the company should submit Kind 2553 to the IRS.
For extra info on small enterprise taxes, contact a Nevada Company Headquarters consultant at 1-800-508-1729.