SOURCE: Payroll On A Budget

Payroll On A Budget

July 12, 2013 08:40 ET

"Why Should You Operate as an S-Corp: Pluses and Minuses"; Another Blog by Author/CEO Charles Read

DALLAS, TX--(Marketwired - July 12, 2013) - "The S-Corporation form of doing business is one of the favorite entities for small businesses, with good reason. Almost all of our clients operate as one. But there are a few downsides as well," said Charles Read, CEO/CPA.

The 'S' part of an S-Corporation is a tax election you make with the Internal Revenue Service. That election must be made within 75 days of incorporating or within 75 days of the start of any tax year of the corporation. There are some restrictions on what corporations can become S-Corporations and your CPA or Attorney can explain those in detail, but the vast majority of new corporations qualify. What the election does is to allow the corporation to pass corporate income, losses, deductions and credit through to the shareholders for federal tax purposes.

Before you incorporate, work with your Attorney and CPA, you will need both. Rules change constantly and every state is different. As always there is no substitute for professional advice on your exact situation.

To view a video and read additional information about the S-Corp, go to, blog posting:

Payroll On A Budget is the leading online payroll processing services company with a focus on offices of 10 people or less. ( One of only a few payroll firms with CPAs on staff to assist clients, the company was designed to save both time and money by providing all payroll related services -- including tax filings and more.

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