How to Start S Corporation in California

If you would like to start an S corporation in California, read the following information to gain further insight into the process. If you are seeking to form this type of business, you, no doubt, want to enjoy the tax advantages associated with forming the entity.


What are the Two Main S Corporation California Benefits?

An S corporation California entity can serve your well, as it offers the following advantages:

  • This business entity offers limited liability but provides the more traditional structure of a corporation.
  • Pass-through taxation is offered for business profits. Therefore, you can record these profits on your tax return.

As a result, shareholders or owners of an S corporation enjoy lower income taxes and self-employment taxes. The pass-through feature permits owners of the company to reduce their total tax costs or pay taxes at a rate lower than what the corporation would have to pay. 

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