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S Corporations in Ohio

Corporation identification is important for many reasons, one of which is tax purposes. Legal entities use designation to properly execute different tax functions when it comes to filing with the Internal Revenue Services (IRS). In particular an “S Corporation” is designated for businesses that wish to be taxed as a partnership because they currently have a hundred or less shareholders.

However, besides the amount of shareholders, there are other requirements that must be adhered to when filing as an s corporation. The corporation in question must have only one class of stock and be a domestic corporation. If you are considering an s corporation classification it is important that you retain an attorney that understands the nuances of your business’ potential.

S Corporation Advantages

The main advantage of s corporation classification is the fact that the corporation in question does not have to function within federal income tax regulations because for tax purposes everything having to do with the cooperation will flow through the personal income taxes of each shareholder. This means that taxes will likely function at the state level.

The only disadvantage worth noting with this kind of classification is the stringent requirements that are imposed on it and because of this the corporation in question cannot have more than a hundred shareholders. So any long term growth would automatically require an update to the corporation’s classification.

Contact Your Ohio Business Law Firm Today

Contact VanHo law today for an aggressive, knowledgeable, and experienced attorney that will guide you through the entirety of your legal matter. Our premier attorney is named as one of the “Top 40 Under 40” by the National Trial Lawyers association and will fight to ensure your business thrives.

Contact us today at (330) 809-1062 to review your s corporation classification.

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