An S Corporation is a small corporation that chooses to be taxed based on the Subchapter S based on the Internal Revenue Code. An LLC entity also fits into this category, which helps the company to take advantage of savings via payroll tax as well as other incentives. By visiting https://www.govdocfiling.com, you can learn more about an S-Corp and easily file for an EIN number for your business.
Single Level for Taxing
With an S-Corp, you have a single level of tax, which is different from a regular corporation. With an S-Corp, there is generally no double taxation and all income and losses are passed on to the shareholders.
Payroll Tax Savings
A shareholder within an S-Corp will be considered an owner and employee. Social security and Medicare taxes are to be withheld and paid for individuals within the company and then distributions to shareholders are then not subject to such taxes. The more revenue that is received by the owner/employee based on their shareholder status, the fewer taxes are paid on SS and Medicare.
An EIN Number
When filing your entity as an S-Corp, you will need an EIN number. At Gov Doc Filing, you have the option to choose your business type and then fill out an application for an EIN number. Select the business type, this time it would be an S-Corp, and then complete the application form. Once submitted, it will take about an hour for an EIN number to be provided for your new corporation.
With an S-Corp, you certainly have advantages. Learning more about this corporation type and then filling out the right paperwork, the EIN number is provided, and your business is ready to function successfully. At Gov Doc Filing, support is also provided to assist you with any help needed while filling out the paperwork correctly. Use support when you have any questions or concerns when filing.