S Corporation FAQ: Frequently Asked Questions about the S Corporation
The list of questions below leads to pages that ask and answer the really common questions I get from my CPA firm clients and from readers who buy one of my do-it-yourself kits. Probably, if you have a question about forming, operating or ending an S corporation, the answer appears below.
However, if you truly do search through the questions and answers below and find that you can't find an answer to your general question about S corporations, you can send your question to steve.nelson@stephenlnelson.com. If your question is clear and of general interest (and not already covered in a question below), I'll try to add it to the list:
Background incorporation
- What, exactly, is an S corporation?
- What does the label "Subchapter S" mean or refer to?
- Who can be an S corporation shareholder?
- Can sole proprietors become S corporations?
- Does an S Corporation provide better limited liability protection than an LLC?
- Does an S Corporation offer better tax savings than an LLC?
- What is an S corporation shareholders agreement?
- Can I incorporate an existing business?
- Does incorporating create a tax shelter?
- What is a Qualified Subchapter S Subsidiary (aka QSUB, aka QSSS)?
- What is a Disqualified S Corporation?
- When is electing "Subchapter S" status a mistake?
- Will Stephen L. Nelson, CPA provide S corporation consulting services?
Starting a new S corporation
- What's a better platform for an S corporation: An LLC or a regular corporation?
- Can I use an S corporation for real estate investing?
- Can I incorporate my business in another state?
- If I'm moving, in which state should I set up my new S corporation?
- Which state (Delaware? Nevada? My home state?) is best for incorporating?
- What if I missed the S election deadline--am I too late?
- With more than one business, should I have more than one S corporation?
- Can I setup an S corporation without an attorney or accountant?
- Should I use an incorporation service to form an S corporation?
Operating an S corporation
- What kind of accounting system is needed for a new S corporation?
- Which tax-free fringe benefits can an S corporation provide to shareholder-employees?
- How do states treat S corporations?
- How are S corporation dividends taxed?
- Does an s corporation complicate bookkeeping?
- How does an S corporation K-1 form work?
- How low can you set S corporation shareholder-employee salaries?
- How much tax can an S corporation really save its shareholders-employees?
- How will the Obama healthcare legislation affect S corporations?
- What happens if an S corporation loses money?
- When does an S corporation pay income tax?
- How does an S corporation file its income tax return?
- Should an S corporation employ the owner's spouse or children?
- Can an S corporation be a member in an LLC?
Winding down (liquidating, terminating S corp status, etc) an S corporation
- How do I shut down an S corporation?
- Can you accidentally terminate the S Corporation status?
- Can I convert an S Corporation to a C Corporation?