Understanding S Corportations
Corporations in our society operate under a broad legal framework that has been in place for many years. Limited liability companies (LLCs), however, are a fairly new development in the law. For this reason, they are not always the most attractive choice for investors.
Case law (developed through legal precedents) remains thin and underdeveloped when it comes to legal matters involving limited liability companies. It is difficult to know in advance how a dispute will play out. For this reason, use of a corporation as a structure is preferred by many investors who want to start a business.
According to the Internal Revenue Service:
“When a small group of investors is involved, they may choose an S corporation structure for tax purposes. In this way, there will only be one tax on the corporation’s earnings, instead of the two levels of taxation that are present in a regular corporation.”
As a veteran business law attorney practicing in Austin for more than 30 years, I have helped many clients form S corporations. Clients of the law offices of John McDuff, Attorney at Law, receive focused counseling until they arrive at the point where they believe they have the most advantageous structure for their new businesses.
Entity Formation and Business Planning Advice
I am a CPA, in addition to being a lawyer practicing in business law. I am well prepared to advise clients on all tax-related aspects of a new or already existing S corporation. I counsel my clients who are establishing S corporations on many additional business transactions pertaining to their new business, including the following:
- Commercial leases
- Employee contracts
- Contracts with suppliers and customers
- Tax matters
Contact Austin Business Attorney, John McDuff
Contact 512-457-1177 to schedule an appointment. Experience the personal service for which this law firm is known. I am available 24/7/365 for my clients.