S corporation essentials – What should you know about this business structure?

Description

Abstract: The fear of double taxation has caused many U.S. businesses to turn to a corporate structure that can best protect their profits: a Subchapter S corporation. Because the rules for S corporations are often in flux, lenders need to keep on top of how they work and what the restrictions are. And business owners — and their lenders — need to be aware of certain hazards inherent in this corporate arrangement. This article explores the ins and outs — and pros and cons — of S corporations.