What is an S-Corporation?
Unlike the regular or "C-Corporation," the S-Corporation avoids double taxation. The subchapter S is like a partnership for tax purposes in that the profits or losses pass through to the owners which is to be reported on their personal tax return. Therefore, the S-Corporation protects your personal assets but pays lower taxes than a C-Corporation.
In both the C-Corporation and the S-Corporation you must maintain certain corporate formalities in order to protect your personal assets. Such as maintaining S-corp filing records of the directors, officers and/or shareholders. Also, the S-corporation must have a separate bank account and file a separate tax return.
For more information on S Corporation advantages, call us at 801467.1900 or start an S-Corporation in Utah today. If you're interested in becoming a contractor in Utah, get your Utah contractor's license now!