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  • How are S corporations taxed? Tips for filing and reducing taxes as a pass-through entity

    A guide for business owners answering commonly asked questions about taxation of S corporations and how to reduce taxes as a pass-through entity.

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    Setting up your business as an S corporation (S corp) provides several tax advantages that are not available to owners of C corporations (C corp) or Limited Liability Companies (LLCs).

    You may wonder how the S corporation taxation generally works. Are you really doing everything you can to reduce your tax burden? And are you taking full advantage of all the business exemptions and credits available in your industry?

    The following guide offers numerous strategies and tips that owners of S corporations can use to lower their taxes, including deductions and credits.

    How are S corporations taxed?

    To the IRS, S corporations (S corps) are considered “pass-through entities”, which means any deductions, losses, income, credits, and profits pass through directly to shareholders, who report their share of the business’s performance

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