Jane and Joe plan to go into business together.They plan to incorporate the business.What tax issues should they consider when deciding whether or not to elect S corporation status?
• Are their individual marginal tax rates lower or higher than a C Corporation's marginal tax rates?
• Do they anticipate profits or losses in the first few years of business?
• Will the corporation generate any capital gains or losses?
• Do they plan to withdraw money from the corporation?
• Will they want or need fringe benefits?
• Do they plan to use a calendar year end or a fiscal year end?

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The Answer of Jane and Joe plan to go into business together.They plan to incorporate the business.What tax issues should they consider when deciding whether or not to elect S corporation status?
• Are their individual marginal tax rates lower or higher than a C Corporation's marginal tax rates?
• Do they anticipate profits or losses in the first few years of business?
• Will the corporation generate any capital gains or losses?
• Do they plan to withdraw money from the corporation?
• Will they want or need fringe benefits?
• Do they plan to use a calendar year end or a fiscal year end?

Jane and Joe Plan to Go into Business Together