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Discussion Forum Index --> Tax Questions --> Professional Association election
Suvi (talk|edits) said:
| 12 January 2007
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| Have a doctor client who incorporated Professional association. What are the options for him to be taxed as? Only S corporation by filing Form 2553? I am not able to find any info on the internet. I would appreciate your help.
Thanks
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Uncle Sam (talk|edits) said:
| 12 January 2007
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| The answer to that depends on what option(s) the state that he's in permits.
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Jdugancpa (talk|edits) said:
| 12 January 2007
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| Nope, if he incorporated, the tax treatment is determined based on the federal tax code, not based on state law. If he has incorporated his options would be two: taxation as a C corporation (which likely will mean he is a Qualified Personal Service Corporation taxed at a flat 35% tax for any taxable income remaining in the corporation) or taxation as an S corporation.
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Suvi (talk|edits) said:
| 13 January 2007
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| So why would anyone choose C corporation?
Thanks J.
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Suvi (talk|edits) said:
| 13 January 2007
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| Can you please tell me where I can find this info. in the rules / code?
Thanks again.
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FlaGators (talk|edits) said:
| 13 January 2007
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| Why choose a C-Corp? All depends on circumstances and goals of the corporation. It's true that C-corp is not usually ideal for small businesses, but what if you had a group of passive shareholders? They could get dividend income vs ordinary S-Corp pass through.
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