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What is a Sub Chapter-S (S-corporation) filing?

April 26, 2017filing s-corporation sub

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What is a Sub Chapter-S (S-corporation) filing?

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Normally a corporation is double-taxed on income earned. This happens where the corporation is taxed on its income and then the shareholders are taxed on any dividends they receive from the corporation’s net after tax income. If your corporation qualifies however you can make a federal filing as a Sub-Chapter “S” corporation and possibly obtain single level or pass through taxation similar to a partnership. You should consult a qualified tax accountant to decide how this option may affect your situation.