Want this question answered?
Yes. S-Corporation status does not change a corporation's liability to suits.
Why don’t firms such as IBM, GE, and Microsoft choose S corporation status?
It is possible for an s-corporation to be a partner in a partnership. You should check with a legal authority to see if there are any special requirements to affect this status for the s-corporation.
No. IC-DISC corporations must be C corporations.
For 1120 s corporation
A closely held company is one in which all shares of stock are owned by a small number of people (often related to each other), and a Subchapter S corporation is one that conforms to that subchapter of the U.S. Internal Revenue Code, including closely held corporations (with additional restrictions on nationality, number of shareholders, etc). The benefit of an S-corp is that the entitity income is not taxed separately from the income of the shareholders, so you don't pay income taxes twice. There is certainly no obligation for a close corporation to file for S-corp status, and there may be good reasons not to (e.g., foreign investors).
IRS 2253 is the form used to apply for S corporation status
501(c)(3) status entitles a corporation to tax exempt status as a charitable organization under the U. S. Internal Revenue Code.
When filing as an S-Corp, you will file a K-1 as well as a W2 being that you are an owner and employee simultaneously.
No, an "S-corporation" is one that has applied for that special status under subchapter S of the U.S. Internal Revenue Code, and has been found to meet all of the pertinent criteria.
C vs S is an election made by a corporation in regards to how it wants to be taxed. A C corporation files a tax return and pays tax based on corporate tax rates. An S corporation files a tax return; however, the profit or loss passes through to the owner or partners personal tax return and tax is paid at the personal rate. Obviously, only a private closely held corporation can elect S status. The state tax treatment for an S-corp may be different than the federal treatment. You could have a corporation which has elected S status for federal taxes and C status for state taxes. The subchapter-S election is merely a tax classification, not a legal entity formation difference.
Generally dis-advantages...double taxation on earnings at least. Business 101.