S corporation

A closely held C Corporation and all C Corporations can donate to a charitable organization no more than 10% of its taxable income. For a closely held C Corporation that donates a computer said to be worth $725 a form 8283 must be filled out. A regular C Corporation does not need to report the 8283 form but still needs to supply details of the non-cash donation just a little less…

the additional capital investment you’re seeking. Your liability as the owner of the company would also change once you become an S-Corporation. As you operate right now, you, the owner, are entirely and personally responsible for any and all liabilities. Once you file the Articles of Incorporation in your state, along with IRS Form 2553, and become an S-Corporation, you will no longer be personally liable. If a cabinet falls from the wall, causing an injury or a truck causes an accident,…

When corporations were first constructed, they were constructed with the goal of serving the investors rather than the management. Their primary objective was to “conduct business activities with a view toward enhancing corporate profit and shareholder gain.” A system of good faith was meant to govern them in which the only interests that were to be focused on were the interests of the corporation as a whole and on the shareholders. The system of governance that existed in corporations began…

Limited Liability Companies (LLCs) Advantages of LLCs A limited liability company (LLC) is seen as “combining the most advantageous features of partnerships and corporations” (Kubasek, Browne, Herron, Dhooge, Barkacs, 2015b, p. 266). Perhaps the most significant aspect is the variety of choices the LLC has upon its inception which are included in the operating agreement. “[T]he enormous flexibility and contractual nature of the LLC may provide advantages such as clearly negotiated and defined…

purposes. If you have been operating as a sole proprietorship/general partnership, recent changes to the law in combination with the real estate boom probably have you wondering what the advantages might be of setting your business up as an LLC or S Corporation (S Corp). You might, as many business owners are, be under the assumption that restructuring your business would be too expensive or too time consuming, but neither drawback should prevent you from…

The S-corporation is subject to single-level taxation, much like a partnership. Stacey’s earnings would be accounted for at the corporate level, but is taxed only at the shareholder level. The C-corporation is subject to double taxation. Stacey’s earnings would be taxed first at the corporate level when earned and then again at the shareholder level when…

year. Ohio Rev. Code Ann. § 2305.11(A). Generally, an individual shareholder may not bring a legal malpractice action against an attorney that is employed by the corporation itself. See e.g. LeRoy v. Allen, Yurasek & Merklin, 114 Ohio St. 3d 323. When a lawyer counsels a corporation, the lawyer has a relationship directly to the corporation and not to any of the shareholders. Ohio Rules of Prof 'l Conduct R. 1.13(a) (2011). In Ohio, courts adhere to a strict privity rule which states…

corporations have to navigate to move their tax home overseas. “Section 7874 require companies that are seeking to change their parent companies 's country of incorporation to have 25 % of their employees, property, and income in that foreign country” (PWC). If they do not fit these requirements the new parent will be treated as a domestic corporation for US tax purposes, and the corporate inversion would be considered a failure…

regards to how you want to be treated by the IRS. The IRS by default, treats a multi-member LLC as a partnershp, and therefore they would file a form 1065 to report the income and expense activity and issue K-1's to the members. However, the members can elect to treat their LLC as an S Corporation, by timely filing form 8832.…

investors involved in the new corporation. Preliminary…