July 2022

Pratt and LeFevre Corporation
https://prattandlefevre.com/contact-us/
450 Simmons Way, Suite 760,
Kaysville, Utah 84037
833-722-8848

S CORPORATIONS VERSES C CORPORATIONS,
WHAT YOU SHOULD KNOW…

S CORPORATIONS VERSES C CORPORATIONS,
WHAT YOU SHOULD KNOW…

C Corporations and S Corporations are tax classifications from the IRS and how the IRS will tax the business entity.

C Corporation is the standard or default corporation under the IRS rules. The S Corporation, “Small Business” is a corporation that has elected a special tax status with the IRS. Below is a chart showing some of the differences:

At Pratt and LeFevre Corporation, we recommend the C Corporation because of the fiscal year tax strategies available and the ability of a Trust owning the Corporation. The question that clients ask is of a possible risk of double taxation? However, with Pratt and LeFevre Corporation’s O.N.C.E. System set in place, your assets and contracts completed, your meeting with our CFO, you will realize the tax benefits that minimize that risk along with the legal benefits available to you. If you are not yet set up? Let’s schedule a meeting with one of our Account Executive’s for your personal O.N.C.E. presentation and personal business organization mapping.

YOUR BUSINESS STRUCTURE TYPE MAKES A HUGE DIFFEEENCE IN TAXES!

For more information, just drop us an email at info@prattandlefevre.com

Question and Answers

How is a business entity deemed “private”?

Setting up a business entity to be private means that the business entity is not conducting business with the public. It doesn't mean that the entrepreneur can control state policies. Public is defined as everyone and every other business or government agency which is not part of the entrepreneur's inner circle. Those are outside the entrepreneur's control. Unfortunately, each State is different when allowing a business entity to register in that state. For example, in Utah anyone outside the business structure must pay a fee to see who the executives, directors and owners are for a business. In other states the state may make the executives, directors and owners a matter of public record. Yet in other states (very few) the only way the officers, directors and owners can be found is through court order.

How a business entity secures its legal protection is for the business to not participate in any transactions/contracts where the business has a legal or contractual obligation, giving it legal exposure. The entrepreneur cannot control how others view a business or what information states allow. But, it can control how visible it is because of its business operations and public exposure.

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