Corporations

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Title: Corporations

Essay Details:

Subject: Business

Author: Anna H

Date: June 20, 2015

Level: University

Grade: A

Length: 6 / 1799

Essay text:

The key characteristic of S corporation status is the "flow-through" of profits and losses, income, capital gains, capital losses, and any other tax consequences to the shareholders of the corporation, in proportion to their ownership interests. The idea is that taxes are not paid at the corporate level, but only at the shareholder level. This "flow-through" characteristic avoids the double taxation of C corporations, where profits are taxed as income and capital gains of the corporation and then taxed again when distributed to shareholders. Another benefit of the flow-through characteristic of S corporation status is that business losses are passed through to shareholders...

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