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Business Corporations Act Subsection 1071 Form 8

Business Corporations Act Subsection 1071 Form 8

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a subchapter S corporation is a corporation that is treated for tax purposes as a quote-unquote pass-through entity before the advent of limited liability companies in the 1990s it was not unusual for a limited partnership to have as its sole General Partner and S corporation to shareholders of which corporation were the limited partners themselves this had the effect not only of providing a limited liability shield for all of the owners of the given business venture it also provided pass-through treatment for all of the business ventures profits and losses this is because despite its name an S corporation is not a corporation or at least it's not a corporation in the sense that it's subject to corporate income tax of the Internal Revenue Code instead an S corporation is more like a partnership at least for income tax purposes with all the income gain deductions losses and credits that the S corporation recognizes passing through and being taxed directly to the sharehol

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