An S Corporation is a tax election made with the IRS that allows a business to be taxed like a sole proprietor or partnership. It’s often referred to as a ‘pass-through’ entity since the corporate profits and losses are passed through and reported on the personal income tax returns of its shareholders. Taking the S Corporation election doesn’t change how your business is structured. For instance, a limited liability corporation can also choose to be taxed like an S Corporation. Corporations must meet specific eligibility criteria, and they must notify the IRS of their choice to be taxed as an S-Corporation within a certain period of time.
To learn more, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.