[Anonymous]

I’m just a bit confused about S corps. I believe they are more or less the same as partnerships, but the formation of S corps is more like C corps?

Would it be right to apply the same rules of formation of C corps but when it comes to things like operations/distributions to treat them like partnerships?

[I'm, Ron Burgundy?]

First thing: You are correct – S-Corps are treated much like Partnerships as they are both pass through entities whereby the corporation/partnership itself does not pay tax. Pay close attention to the separately stated and non-separately stated items. Example: If an S-Corp makes a charitable contribution this item is Separately stated on the partner/shareholder's K-1.

Second: An S-Corp is initially formed as a C-Corp and “Elects” to be treated as an S-Corporation. This must be done by the 15th day of the third month (i.e. March 15th) in order to be treated as an S-Corp for tax purposes for the current fiscal year.

Take a look at page 6 of this document. In fact, read the entire document as it will probably clarify things for you.

https://www.irs.gov/pub/irs-prior/p589–1995.pdf

Quick Note – If your plan is to work in a small sized firm, you will have to get to know S-Corps quite extensively as a majority of your small business clients will be S-Corps.

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[I'm, Ron Burgundy?]

First thing: You are correct – S-Corps are treated much like Partnerships as they are both pass through entities whereby the corporation/partnership itself does not pay tax. Pay close attention to the separately stated and non-separately stated items. Example: If an S-Corp makes a charitable contribution this item is Separately stated on the partner/shareholder's K-1.

Second: An S-Corp is initially formed as a C-Corp and “Elects” to be treated as an S-Corporation. This must be done by the 15th day of the third month (i.e. March 15th) in order to be treated as an S-Corp for tax purposes for the current fiscal year.

Take a look at page 6 of this document. In fact, read the entire document as it will probably clarify things for you.

https://www.irs.gov/pub/irs-prior/p589–1995.pdf

Quick Note – If your plan is to work in a small sized firm, you will have to get to know S-Corps quite extensively as a majority of your small business clients will be S-Corps.

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[Author]

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