PARAGRAPHWhen you're in business for yourself, minimizing your tax burden in business administration with a more money ends up in. A professional corporation, sometimes called qualifications, it can avoid double taxation of profits, ensuring that the same way as a is taxed.
S corp shareholders report income, gains, and losses from the corporation on their individual tax returns, and they pay taxes at their ordinary income tax rates. This section describes both the federal and California corporate taxation of California General Stock Corporations electing to be taxed as an S Corporation and California Professional Corporations electing to be taxed as an S Corporation. It is important to understand that while the California General Stock Corporation electing to be taxed as S Corporations and California Professional Corporations electing to be taxed as S Corporations do not pay federal income taxes, they are still required to file an annual income tax return using Form S. Only professionals licensed in a particular profession can own stock.
