Simple question on 'S' corp

[Brian Gallagher]

Hi,

I'm on the run and embarassed that I don't remember this:

Is an 'S' corp a partnership that elects to be taxed as a coproration, or a corporation which elects to be taxed as a partnership?

[Michael Devault]

It's a corporation that elects to be taxed similar to a partnership. Basically, corporate income is passed thru to the stockholders to avoid the double taxation of what would otherwise be paid out in the form of dividends.

Hope this helps.

[jpod]

It is a corporation, but it is not electing to be taxed as a p/s. It and its s/hs are electing to be taxed under the provisions of Subchapter S of the Internal Revenue Code.

In a very broad "big picture" sense, Sub S treatment is similar to partnership tax treatment, but it really is very different when you get down to the fine points.

[Brian Gallagher]

thanks for the answers. all i needed was the gist of it.

my appreciation to you all...

...bg