32) S-Corporations Explained

Welcome to another video from Jon’s Bookkeeping.

I’m Jon Cooney and today I want to continue discussing incorporating your business.

Are you an entrepreneur considering an S-Corporation business structure?

In this video, we'll delve into its basics, benefits, and key considerations.

So, what's an S-Corp?

Essentially, it's a pass-through tax entity that protects shareholders' liability.

• You can have up to 100 shareholders, which is great for smaller businesses

• Only U.S. citizens or resident aliens can own shares

• You've got one class of stock, keeping things simple

• And, you'll need to hold annual meetings and keep records"

Now, let's talk benefits:

• Pass-through taxation saves you from double taxation

• Limited liability protection for shareholders

• Reduced self-employment taxes for owners

• Flexible ownership and management

• Enhanced credibility with investors and customers

Here's how ownership and management work:

• Shareholders own the corporation

• The Board of Directors oversees strategy

• Officers handle daily operations

• And, you can bring in experts with advisory boards

And as far as tax implications:

• Income passes to shareholders

• Reduced self-employment taxes

• Potential deductions for business expenses

• Just remember, compliance requires annual tax returns and reports

In summary, S-Corps offer:

• Pass-through taxation

• Limited liability protection

• Flexibility

Consult a professional to determine if an S-Corp is right for your business

And if you need business entity guidance or bookkeeping services, schedule a free consultation call with me.

We can discuss your business goals and financial needs.

I’m sure I can help you and I’d love to speak with you!

www.jonsbookkeeping.com