[shmogma]

can someone help clarify the difference between the two?

The earnings of the two get swallowed up as part of individual gross income correct?

FAR - 80
REG - PENDING
AUD- PENDING
BUS - PENDING

[GHardesty]

SE tax is on the schedule C, which will flow through to the face of the 1040, above AGI. S-Corp is on the schedule E. It will file a K/K-1 form. S-corp is a flow through entity, even if it is an extension of yourself, whereas SE is considered yourself. However, to answer your question they both end up on the face of the 1040 form, above AGI.

Other differences include is the amount at risk (basis), officially filing a charter or not, 100 or less shareholders vs just you, among other things. As far as income goes they are both going to be similar.

Disclaimer: I just started studying REG and haven't done any practice MCQ's. Just wanted to through that in there and keep you in the loop of that.

AUD 80 05/31/16 (1x)
BEC 80 01/16/16 (3x)
FAR 78 11/23/15 (2x)
REG 87 02/29/16 (2x)

[Author]

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