Talk:S corporation/Archives/2015

This page is no longer disputed

If anyone still has questions about S corporations, please post them and I will answer with citations.

Grimmbusiness (talk) 10:53, 22 May 2015 (UTC)

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I'd say it's still disputed, but I just stumbled across this ... The page is clearly incorrect in many factual aspects. An S corporation isn't a corporation at all. Subchapter S is the portion of IRC that allowa a tax election under federal tax law. Subchapter S applies to C corporations and non-corporations as well, such as LLCs. There is no clarification of this anywhere in the article. A reasonable person comes away with the strong impression that an S corporation is an actual corporation and not a federal tax election. The article is written as if every S corporation is a corporation. It's not. — Preceding unsigned comment added by 68.37.24.220 (talk) 07:57, 18 September 2015 (UTC)

For an LLC to be treated as Subchapter S for taxation, it files Form 8832 to be taxed as a corporation, then Form 2553 to be taxed under Subchapter S. — Preceding unsigned comment added by 68.37.24.220 (talk) 08:09, 18 September 2015 (UTC)

Yes, an S corporation is an actual corporation. Indeed, only an actual corporation can legally elect to be an S corporation. The S election is indeed provided for in the Internal Revenue Code -- but the corporation itself is not the "election."

Form 2553 is indeed the form used to make the S election. Famspear (talk) 01:21, 19 September 2015 (UTC)

The point was an LLC can legally elect to be a "Subchapter S corporation" under IRS rules but is *NOT* a corporation. The 'C' in LLC is for "company", i.e., Limited Liability Company. It's a company, not a corporation. I.e., this is proof that a "Subchapter S corporation" is not necessarily a corporation. A "Subchapter S corporation" can be a corporation if a C corporation elects to be taxes under Subchapter S. — Preceding unsigned comment added by 68.37.24.220 (talk) 15:21, 28 September 2015 (UTC)

Yes, that's pretty basic. But that's not what you originally wrote. You wrote: "an S corporation isn't a corporation at all." That's not precisely correct. Many S corporation are indeed corporations.

Your later statement is correct: ".....a 'Subchapter S corporation' is not necessarily a corporation...." (italics added by me). Or, you could have written something like this: "Some S corporations are not actually corporations. For example, limited liability companies and partnerships can elect to be treated as S corporations." Famspear (talk) 17:37, 28 September 2015 (UTC)

Also, I have added your clarification to the article in several places. Thanks! Famspear (talk) 17:42, 28 September 2015 (UTC)