Despite Higher Tax Rates, 'S' Corporations Retain Advantages Over 'C' Corporations

By John N. Evans  |  March 25, 2014  |  Download PDF

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

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John N. Evans, CPA, brings nearly 40 years of experience in corporate tax to his role as the Partner-in-Charge of Marks Paneth’s New Jersey office. 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 +

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