Form with which the board of directors of a corporation accepts the resignation of a corporate officer.
Corporation Personal Held Within A Corporation In Harris
Category:
State:
Multi-State
County:
Harris
Control #:
US-0005-CR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
A Personal Service Corporation These services can be in either accountancy, law, health care, actuarial science, engineering, performing arts, consulting or architecture. Organizing this way allows the firm to enjoy many of the benefits of a corporation.
The closely held corporation is often a private corporation, with restrictions on who can hold shares. A publicly held corporation typically has many shareholders; as a public company, they cannot restrict who can obtain shares, which are listed on public stock exchanges.
Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law firms, and the performing arts.
The main drawbacks are that a QPSC cannot use the graduated income tax rates of the C corporation, but is taxed at a flat rate of 35%, any net operating losses (NOL) can only be carried forward, not backward, and strict rules will apply if the QPSC chooses a fiscal year.
The C corporation is the standard (or default) corporation under IRS rules. The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages. Both business structures get their names from the parts of the Internal Revenue Code that they are taxed under.
Key Takeaways Personal service corporations are designed to provide certain services in fields like accounting, engineering, and consulting. They are taxed at the same rate as C corporations (21%), but they may also benefit from additional corporate tax deductions.
A corporation will be considered a personal holding company if it meets both the Income Test and the Stock Ownership Test. The Income Test states that at least 60% of the corporation's adjusted ordinary gross income for the tax year is from certain dividends, interest, rent, royalties, and annuities.
C corporations provide limited liability protection to owners, who are called shareholders, meaning owners are typically not personally responsible for business debts and liabilities.
Generally, shareholders are not personally liable for the debts of the corporation. Creditors can only collect their debts by going after corporate assets. Shareholders will usually be on the hook if they cosigned or personally guaranteed the corporation's debts.
Corporations issue stock to their owners and the corporation itself must file an income tax return. If the corporation ceases doing business, the owners can file paperwork to have the corporation dissolved, or they can allow the corporation to become inactive.
