Small companies with net profits of less than $100,000 per year before any compensation to shareholders are ideally suited for S-corporation status.

Question

Quizplus · Accepted Answer

S-corporation status is typically recommended for small businesses with net profits of less than $100,000 per year before any compensation to shareholders, as it allows the income and losses of the business to be passed through to the shareholders' personal tax returns, avoiding double taxation.

Small Companies with Net Profits of Less Than $100,000 Per