S Corp A small business can qualify as an S corporation if it has 100 or fewer shareholders. They must be individuals, specific trusts and estates, or specific tax-exempt organizations.

But this ignores the fact that wages are subject to FUTA (Federal Unemployment Tax Act) and FICA taxes, while the passthrough S corporation profit is not. Unlike partnerships or sole proprietorships, ...

An S corporation also allows for pass-through taxation, but S corps are limited to businesses with 100 or fewer shareholders. Whether or not you choose an LLC or S corp to pay yourself depends on ...