BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Both S corps and LLCs are pass-through entities, meaning that they don’t pay corporate taxes, and both offer limited liability protection for their owners/principals.

Detailed explanation-2: -S corporations are responsible for tax on certain built-in gains and passive income at the entity level. Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).

Detailed explanation-3: -Shareholders may only be individuals, certain trusts, estates, and certain exempt organizations (such as a 501(c)(3) nonprofit). Shareholders may not be partnerships or corporations. Shareholders must be US citizens or residents.

Detailed explanation-4: -An S corporation is a corporation that has elected to be taxed for federal income purposes under Subchapter S of the Internal Revenue Code instead of Subchapter C.

Detailed explanation-5: -Every taxpayer including business corporations require some tax planning that will enable them to maximise their profits by reducing the tax payment burden.