A corporation is defined as a legal entity or structure created under the authority
of the laws of a state consisting of a person, or group of persons, who become
shareholders. The entity’s existence is considered separate and distinct from that of
its members. Since a corporation is an entity in its own right, it is liable for its own
debts and obligations. In forming a corporation, prospective shareholders transfer
money, property, or both, for the corporation’s capital stock.
An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.
In general, S Corporations do not pay any income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. This concept is called single taxation; if the corporation is taxed as a C Corporation, it will face double taxation, meaning both the corporation's profits, and the shareholders' dividends, will be taxed.
Apply for Tax ID Number for Corporation >
PLEASE NOTE: A Tax ID Number and an EIN Number are exactly the same. There are many different terms used by many different people but all of them represent the same thing.
All of the following are the same:
- Tax Id Number
- Federal Tax Id Number
- Federal Tax Identification Number
- Employer Identification Number
- Federal Employer Identification Number
- EIN Number
- FEIN Number
Apply for Tax ID Number for Corporation
Choose Your State:
|Businesses that Need a Tax ID Number:
- Sole Proprietor / Individual
- Limited Liability Company (LLC)
- Personal Service Corporation
- Church Controlled Organization
- Non-profit Organization
- Estate of a Deceased Individual
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