The S Corporation is one of the most common entity choices for small and mid-sized business owners — but it is also the entity structure with the strictest IRS eligibility rules. Unlike a C Corporation, which has effectively no shareholder restrictions, an S-Corp must satisfy a set of detailed qualifications under Internal Revenue Code Section 1361 — and any violation of those qualifications, even an inadvertent one, can automatically terminate S-Corp status and revert the corporation to...

If you own a corporation — or you are considering incorporating your business — one of the most consequential decisions you will make is whether to operate as a C Corporation (C-Corp) or to elect S Corporation (S-Corp) status. The two are governed by entirely different sections of the Internal Revenue Code, taxed under entirely different rules, and subject to entirely different compliance requirements. The differences are not subtle — they affect federal tax rates, officer compensation rules,...

If you receive 1099 income — as a construction subcontractor, an of-counsel attorney, a locum tenens physician, a 1099 dentist at a group practice, a real estate investor receiving rent on 1099-MISC, or a marketing agency owner taking pass-through profits — you are facing a tax planning trap most of your peers never address. The IRS has built the entire 1099 system around the assumption that YOU will track your own income, calculate your own tax, and pay it in quarterly installments...