Date of Defense
Kathleen Sinning, Accountancy
Joel Bowman, Business Information Systems
David Rozelle, Accountancy
limited liability, corporate tax
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.
Heinig, David A., "The S-Corporation: What it is and How it Can Help Your Business" (1991). Honors Theses. 13.
Honors Thesis-Campus Only