S-Election
The election by members of a company with one or more U.S. citizens or permanent residents that results in the passing-through of a corporation’s taxable income or losses to the stockholders. The advantage of the S-Election for corporations is that profits distributed as S-Corporation dividends are treated as passive income not subject to employment taxes […]
The election by members of a company with one or more U.S. citizens or permanent residents that results in the passing-through of a corporation’s taxable income or losses to the stockholders. The advantage of the S-Election for corporations is that profits distributed as S-Corporation dividends are treated as passive income not subject to employment taxes if reasonable compensation has been paid to stockholders performing services for the S-Corporation.