Discussion:Personal Service Corporation election of S status.

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Discussion Forum Index --> Advanced Tax Questions --> Personal Service Corporation election of S status.
Discussion Forum Index --> Tax Questions --> Personal Service Corporation election of S status.

Glen2727 (talk\|edits) said:	1 April 2008
Would a single owner C Corporation (Chiropractor) be treated as a Personal Service Corporation. Could the corporation elect S Status in the future if it is classified as a PSC? Thank you

JR1 (talk\|edits) said:	April 1, 2008
Why not elect S either way? Why mess with a C and the double tax problems, on top of the PSC problem?

Glen2727 (talk|edits) said:

1 April 2008

Before I was involved the tax payer set up a c corporation and it was inactive for the last several years as he was employed by another chiropractor. This past year he went out on his own opened up a checking account with the corpoate ein and started doing business. He became a client of mine early this year, so he has to file a c corp return for last year.

Do you think he should be classifed as a PSC. Could he elect S status in the future?

Thank you for your insight I really appreciate it.

Jddanford (talk\|edits) said:	1 April 2008
It appears from what you posted that it is a PSC. he can elect S status, it is late now but there are still options.

JR1 (talk\|edits) said:	April 1, 2008
I'm no PSC guy, dodging C's at all cost in my life. Yes, he can elect S but you're too late for 08. And yes, I think he's PSC for last year, so time for a year end bonus, eh?