Are there tax advantages to operating as an S corporation?

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Yes. The major federal income tax advantages of operating as an S corporation include:•  single level of tax – Generally, the income of an S corporation is passed through to its shareholders and is taxed only once to the shareholders. •  losses – Generally, S corporation shareholders may deduct their shares of the corporation's net operating loss on their individual tax returns in the year the loss occurs. •  income splitting – S corporation shareholders can split income amongst family members through gifts or sales of stock thereby shifting income tax liability to family members in lower tax brackets. •  alternative minimum tax – The AMT does not apply to S corporations (although their shareholders may be subject to the AMT).Considering a Tax Professional? For no obligation free consultation contact us today!ABA Tax Accountinginfo@abataxaccounting.com866-936-0430 Toll Freehttp://www.abataxaccounting.comwww.abatax81.blogspot.comwww.abataxaccounting.wordpress.com