Despite Higher Tax Rates, 'S' Corporations Retain Advantages Over 'C' Corporations
By John N. Evans | March 25, 2014 |
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Owners of small, growing businesses face a perennial question: Should the business function as an S corporation, or should the entity revoke its election under Subchapter S of the Internal Revenue Code? Individual tax rates are now generally higher than corporate rates – but that doesn’t mean that it’s an advantage to realize income as a corporation. Tax rates are not the whole story.
This article, “Despite Higher Tax Rates, ‘S’ Corporations Retain Advantages Over ‘C’ Corporations”, by John Evans and Maria Castilla, was originally published in Practical Tax Strategies by Thomson Reuters, December 2013.
About John N. Evans
John N. Evans, CPA, brings over 40 years of experience in corporate and individual tax to his role as Senior Consultant at Marks Paneth LLP. He specializes in tax issues affecting closely held businesses and their owners. He has worked on tax matters related to conversions of large, multinational C corporations into S corporations, including planning to minimize the tax on subsequent dividend distributions. He has reorganized S corporations and limited liability companies (LLCs) so... READ MORE +
