When setting up a new business, individuals should know the Internal Revenue Service (IRS) recognizes two kinds of business structures, which determine how the business will be taxed by the government. An “S Corporation” is one of the two types of business structures an entrepreneur may choose.
Business owners who decide to make their venture an “S Corporation” are not mandated by the IRS to settle corporate income taxes based on their profit. Usually, individuals who decide to run small businesses are the benefactors of S Corporations because they are taxed only once, but they also receive the legal advantages enjoyed by other types of businesses. Individuals should know they need to file Form 2553 with the IRS, requesting to become an S Corporation, and they will need to comply with the standards set to acquire the status.
If you are required to make a decision for your business, seeking the opinion of a skilled business attorney is critical to safeguarding your investments. Get in touch with an attorney at Adam Pugh in Austin today by calling (512) 472-2431 to find out how we may work on your behalf.