Posted by David Oliver on 2/24/2013 to Federal and State Taxes
Nevada Subchapter S Election
How the Subchapter S Corporation Will Work For You
IncSmart Nevada (Small Business and Startups) - IncSmart Nevada (Small Business and Startups) - In a Nevada Subchapter S Corporation, taxable income will be allocated proportionately among the shareholders. A C corporation would be subject to corporate tax rates ranging as high as 39%. After tax corporate income, when distributed as income to shareholders, would be taxed a second time on the individual's income tax returns. The double taxation of corporation can be eliminated and reduced with a Subchapter S Corporation. A Subchapter S Corporation income is taxed to the shareholders, and keeps the benefits of a LLC.