Seeing your small business begin to blossom and develop into a well-recognized company is like a dream come to true. But with the development of your company, the rate of tax also tends to rise.

Growing companies struggle with a lot of difficulties in the season of tax, and this is when you should start to form S Corporation. S corporation comes very handy for the small businesses in the season of tax. It also provide the business a good tax compensations while keeping your ownership flexible.

The corporate income tax is not to be paid by S-Corp. It is quite similar to the LLC, which signifies that all the profit or loss generated by S Corporation will only influence the personal income tax returns of the owners and shareholders, and only they will be liable to pay tax on that.