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The C corporation is the standard (or default) corporation under IRS rules. The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages. Both business structures get their names from the parts of the Internal Revenue Code that they are taxed under.
An S corporation (S corp) is a tax designation not a formal business structure. Business owners that are looking to withdraw money from their company for their personal use may benefit from electing S corp tax designation for their LLC or corporation.
Corporations Any extension allowed by the IR for filing the federal return automatically extends the Wisconsin due date of Form 5 to 30 days after the federal extended due date of eptember 15. Additionally, the due date of Form 5 can be extended automatically without filing a federal extension.
Under Wisconsin law, a tax-option (S) corporation is one that is treated as an S corporation under the federal IRC, as amended to a specified date, and has not elected out of Wisconsin tax-option status.
Use paper clips instead. ? Mail your return to: Wisconsin Department of Revenue, PO Box 8965, Madison WI 53708- 8965.
Both S corps and LLCs are known as "pass-through entities" because they pay no corporate taxes. Instead, they pay their shareholders, who are responsible for the taxes due.
To form a Wisconsin S corp, you'll need to ensure your company has a Wisconsin formal business structure (LLC or corporation), and then you can elect S corp tax designation. If you've already formed an LLC or corporation, file Form 2553 with the Internal Revenue Service (IRS) to designate S corp taxation status.
The tax benefit for S corporations is that business income, as well as many tax deductions, credits, and losses, are passed through to the owners, rather than being taxed at the corporate level.