Personal Service Corporation Vs S Corp

Personal Service Corporation Vs S Corp. It’s critical to know what type of business entity you want when filing. As per the irs, c corp is the default nature of companies i.e.

A personal services corporation is a canadian tax designation for a corporation where the shareholder would be considered an employee if it weren't for the corporate structure. A corporation is a qualified personal service corporation if it meets both of the following tests: This does mean they can face the double taxation that corporations are known for.

If a c corporation qualifies as a small business corporation, it can elect to be taxed as an s corporation by the irs.

If a c corporation qualifies as a small business corporation, it can elect to be taxed as an s corporation by the irs. These services span a wide variety of endeavors in many fields, and are specified for tax purposes in the united states by the internal revenue service (irs). Personal service corporations are taxed at the highest corporate rate, and dividends distributed to shareholders are taxed on their individual returns as well. The only way for the shareholders to get $$ out is to pay salaries or dividends.