S-Corp Election
An IRS tax election (Form 2553) allowing a corporation or LLC to pass income through to owners' personal returns, avoiding corporate-level tax. The key benefit: owners who are also employees can split income between salary (subject to FICA) and distributions (not subject to FICA), saving 15.3% on the distribution portion. The #1 tax-saving structure for profitable small businesses.
Where This Matters
Choosing and setting up the right business structure — LLC, S-Corp, C-Corp, partnership — with California-specific tax implications and long-term planning.
Legal strategies to reduce business and personal tax burden — entity optimization, deferred compensation, retirement planning, California-specific tactics.
Related Terms
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