The “S” in S corporation refers to a tax designation. C corporations can choose any calendar month as the end of their financial year.An S corporation is a pass through entity for tax functions. If you plan to ultimately take your service public, you can not use an S corporation.Although S corporations are a tax choice, there are limitations on what business entities can make the election.

The “S” in S corporation refers to a tax designation. Federal tax laws immediately think about every corporation to be a”C”designation. All shareholders should sign the election.A C corporation stands alone for tax purposes. C corporations can choose any calendar month as the end of their financial year.An S corporation is a pass through entity for tax purposes. If you intend to eventually take your organization public, you can not utilize an S corporation.Although S corporations are a tax choice, there are restrictions on what corporate entities can make the election.

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