Pass-through taxation is a tax structure where a business generally doesn’t pay income tax at the company level; instead, its profits and losses “pass through” to the owners and are reported on their individual tax returns. It is commonly used by entities like partnerships, S corporations, and many LLCs.
Florida LLCs can elect S corporation tax status by filing IRS Form 2553—typically within 75 days of formation or by March 15 for a calendar-year entity—without changing the LLC under Florida law. In 2026, the biggest risks are late/invalid elections, ineligible ownership, and payroll and accounting missteps that invite IRS reclassification. This article explains the
An S corporation is a corporation that elects IRS “S” status so profits and losses pass through to shareholders and are taxed once at individual rates. It offers corporate limited liability while avoiding C corporation double taxation if eligibility rules are met. This article explains S corp basics, taxation, requirements, and key pros/cons. Understanding S
What is an S corporation? Read More »
