Sub chapter S Minutes and IRC (2553) printed forms and instructions to file with the IRS. Medical Care reimbursement forms included.
An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Sub chapter S of Chapter 1 of the Internal Revenue Code.
In general, S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. This is usually a nice option because most individuals have a lower tax rate than the corporate entity itself would. This concept is called single taxation; if the corporation is taxed as a C corporation, it will face double taxation, meaning both the corporation's profits, and the shareholders' dividends, will be taxed.