Get IRS 1120-PC 2014

PCs are taxed by the corporate tax structure. This is a two-level tax system as PCs' profits are taxed at the company level and again at the shareholders' level. The IRS levies a 35 percent flat tax rate on PCs profits and then they're distributed to shareholders in the form of dividends.

S Corp Status for Professional Corporations If you have a professional corporation, you may qualify for pass-through taxation by electing to be treated as an S corporation by the IRS. ... Most states allow professionals to opt for an S corporation, professional corporation (PC), or limited liability company (LLC).

S-corporations are pass-through entities. That is, the corporation itself is not subject to federal income tax. Instead, the shareholders are taxed upon their allocated share of the income. ... Shareholders do not have to pay self-employment tax on their share of an S-corp's profits.

In general, your corporation is a PSC if it is owned and run by a professional(s) who must be licensed to practice that hasn't filed an S election. In other words, it is a C corporation that pays a flat tax rate of 35% on all profits. [By the way, any corporation is, by default, a C corporation.

LLCs and PCs typically offer the personal asset protection of corporations. There is one major difference, however. PCs do not offer their owners protection from malpractice claims. ... Like all corporations, LLC owners enjoy personal asset protection, unless creditors prove company fraud or misrepresentation.

Purpose of Form Use Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return, to report the income, gains, losses, deductions, credits, and to figure the income tax liability of insurance companies, other than life insurance companies.

Limited liability companies and professional corporations, also called personal service corporations, are two types of business entities operating in the United States. The Internal Revenue Service generally taxes both LLCs and PCs differently.

If you need to file an individual federal tax return, you'll use IRS Form 1040, 1040EZ or 1040A.

The professional LLC uses the designation Professional Limited Liability Company or PLLC. A professional corporation is taxed like a C corporation (unless they make the S corporation election). However, some professional corporations do not have the advantage of graduated corporate federal income tax rates.

S Corp Status for Professional Corporations Small businesses often must minimize their tax burden to become profitable. If you have a professional corporation, you may qualify for pass-through taxation by electing to be treated as an S corporation by the IRS.

With pass-through taxation, the income to the entity is not taxed at the entity level; however; the entity does complete a tax return. The income or loss as shown on this return is passed through the business entity to the individual shareholders or interest holders, and is reported on their individual tax returns.

Professional corporations or professional service corporation (abbreviated as PC or PSC) are those corporate entities for which many corporation statutes make special provision, regulating the use of the corporate form by licensed professionals such as attorneys, architects, engineers, public accountants and physicians ...

If you have a professional corporation, you may qualify for pass-through taxation by electing to be treated as an S corporation by the IRS. ... In many states, licensed professionals are not permitted to operate as regular corporations. However, a professional corporation is an alternative that provides limited liability.

LLCs and PCs typically offer the personal asset protection of corporations. There is one major difference, however. PCs do not offer their owners protection from malpractice claims. ... Like all corporations, LLC owners enjoy personal asset protection, unless creditors prove company fraud or misrepresentation.

PCs are taxed by the corporate tax structure. This is a two-level tax system as PCs' profits are taxed at the company level and again at the shareholders' level. The IRS levies a 35 percent flat tax rate on PCs profits and then they're distributed to shareholders in the form of dividends.