Date of Defense

Spring 4-27-1991

Department

Accountancy

First Advisor

Kathleen Sinning, Accountancy

Second Advisor

Joel Bowman, Business Information Systems

Third Advisor

David Rozelle, Accountancy

Keywords

limited liability, corporate tax

Abstract

The S corporation is a business entity that is taxed like a partnership, but has all the advantages of a corporation. This means that the revenues, expenses, gains, and losses "flow through" to the shareholders. Therefore, S corporation is not subject to federal income taxes. In order to become an S corporation, a corporation needs to be three requirements and file for S status. After electing S status, careful planning is needed to ensure that the election is not terminated. Congress is currently revising the tax code to make it more difficult to meet the requirements for S status and to remain an S corporation. The principal advantages are: no double taxation of earnings and easy transfer of interest.

Access Setting

Honors Thesis-Campus Only

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