Business tax

Tax Cuts and Jobs Act: Impact on Businesses

Tax Cuts and Jobs Act: Impact on Businesses

The Tax Cuts and Jobs Act, a $1.5 trillion tax cut package, was signed into law on December 22, 2017. The centerpiece of the legislation is a permanent reduction of the corporate income tax rate. The corporate rate change and some of the other major provisions that affect businesses and business income are summarized below. Provisions take effect in tax year 2018 unless otherwise stated.

Introduction to the S Corporation - Income or Loss

Introduction to the S Corporation - Income or Loss

What is an S corporation?

An S corporation is a small business entity that is treated as a regular corporation for all purposes other than its treatment under tax law. To make a "subchapter S election," a corporation must satisfy a number of requirements:

  • All shareholders must consent to the S corporation status
  • The number of shareholders is limited to 100 (25 for tax years beginning prior to 2004)
  • The corporation can issue only one class of stock
  • The S corporation must be a domestic corporation, and its shareholders must be citizens or residents of the United States
  • Only individuals, estates, S corporations, and certain trusts can be shareholders of the S corporation