S-Corporation

The Nevada S-Corporation has many characteristics similar to the C-Corporation with some very important differences.

It in itself is a major entity for what is called income or loss “pass through” for tax purposes. The S-corporation is great for real estate since most will lose money (after depreciation and business expenses) “on paper for tax purposes” but in reality, there is a cash flow enjoyed by the shareholder.

Another difference is the company’s tax return is filed as part of the owner’s personal tax return. If there is a loss, it will be transferred to the owner’s 1040 reducing any other taxable income.

A major difference between the S-Corporation and a Sole Proprietor, if there is a taxable income, the dividend is not subject to the 15.3% “Self Employment” tax.

This alone may save Thousand of dollars in taxes.
  1. S Corporation
    S Corporation
    Description