What is an S Corporation and what are the advantages of an S corporation?

An S Corporation is a unique tax categorization that you have to apply for and it must be granted to you by the IRS. You can only apply for this after you have already formed your corporation. If you choose this type of election, it allows for any income which you have received from your company to be taxed directly to you, as the shareholder, as opposed to the company. The most important advantage of this type of categorization is that it allows you to avoid the prospect of double taxation. Thus, you can avoid paying tax on income received by the corporation itself, as well as paying tax on any distribution or dividend income that you receive from the corporation.

The Spring business lawyers at Garg & Associates will meet and consult with each client individually, discuss their business strategies, and arrive at a solution that best suits their needs. If you need a skilled business attorney, you owe it to yourself and to your business to consult with attorneys who have your best interests as their top priority. The Garg & Associates attorneys proudly serve all of North Houston and are simple a phone call away.

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