Free Consultation|USA Only +1 (866)754 4460|Outside USA +1 (516)822 3100 or +1 (631) 623 5100

You are here : Home > Services > Comments

Glossary

TESTIMONIALS

Our Customers Views

CEO Message

Welcome to our website. I hope you find this information right for you.

What are the disadvantages of a Professional Corporation?�

Existing customers please login to check the status of your order at Infotax Square

Kent Foltz wrote on : Sun Feb 28th,2010 Back to Article

Your information indicates a primary disadvantage of a prof. corp. is the potential for double taxation. However, is is my understanding a professional corporation can elect S corp. status. Accordingly, would not S corp. status negate the double taxation ? Also, if S corp. status were elected by a professional corp. that was formed and operated in CA, would that corp. be taxed as an S corp. in CA ?

Reply : infotaxsquare.com

Dear Kent Foltz: Thanks for choosing InfoTaxSquare.com for your business needs. Yes, A professional corporation is eligible for an S-Corporation and can be avoided for double taxation in most states. But in some states no. It will be considered a pass through entity but can not be avoided double taxation like in the state of California.

Please use the following link to apply professional corporation.

https://www.infotaxsquare.com/forms/professional-init.php?o=co

InfoTaxSquare.com
Business Documents
Filing!

Load More