What is an S Corp?
S Corporations (or S Corps) are special types of corporations that, for tax purposes, choose to pass corporate income, losses, deductions, and credits through to their shareholders. The shareholders report the flow-through of income and losses on their personal tax returns and are taxed at their individual income tax rates. This allows S corps to avoid double taxation — the business is essentially not taxed.
Is my company an S Corp?
If you don’t know, chances are you’re probably not. To qualify for S Corp status, your company must meet a few requirements and submit a specific form (Form 2553) signed by all the company’s shareholders. Read more about the requirements to become an S Corp on the IRS’ website here.
How can Justworks help me if my company is an S Corp?
Justworks will handle all your tax filing for your company if it is an S Corp.
If my company is an S Corp, what do I need to do?
Tell us! If your company is an S Corp using Justworks, we need to know to ensure we file your taxes correctly on your behalf. Filing for S Corps is a different process to other business types because of the unique tax arrangement.
If you haven’t already let us know, you can do so by reaching out to your Account Manager or email@example.com. We will also need the names of any shareholders with more than 2% ownership. It’s important that you give us this information no later than December 15, 2017 so that we can finalize your 2017 taxes.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.