An S-corporation is a federal tax election and can be formed from a regular company (a C-corp) OR an LLC.
For most purposes, an S-corp distribution is defined simply as money you take out of the company that is not taxed through payroll.
The majority of GP CPA’s clients own and operate S-corporations (“S-corp”), as our firm specializes in the administration, accounting, and taxation that is unique to this type of business entity.
S-corporations (“S-corps”) is the technical term for the federal tax election, aka IRS Form 2553, and are named after their place in the IRS code, subchapter “S.”
The battle of supremacy between S & C corporations continues to rage with the new tax law changes.