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To qualify as an S corporation in Missouri, an IRS Form 2553 must be filed with the Internal Revenue Service. In very few states, you will also be required to file a separate state election, as specified by that state, in order to qualify as a Sub S Corporation.
Another benefit of having your business taxed as a corporation is the fact that not all of the business income needs to be reported on your personal tax return. In fact, S corporations can separate the owners from the business, which allows the owners to also be employees of the LLC.
The S corporation is the only business tax status that lets you save on Social Security and Medicare taxes while avoiding double taxation. An LLC taxed as S corp offers benefits of a corporation while also providing flexibility on income treatment.
For Missouri income tax purposes, the S Corporation income tax return is filed for informational purposes only. The tax is paid by the shareholder on their Missouri individual income tax return.
LLCs. As an LLC owner, youll incur steep self employment taxes on all net earnings from your business, whereas an S corporation classification would allow you to only pay those taxes on the salary you take from your company. However, itemized deductions could make an LLC a more lucrative choice for tax purposes.
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Some states require additional paperwork and others dont recognize S Corp status at the state level at all.Keep in mind, some jurisdictions do not recognize S Corporation election: District of Columbia. Louisiana. New Hampshire. New York City. Tennessee. Texas. California.
Missouri recognizes the federal S corporation election and does not require a state-level S corporation election.
In general, corporations have a more standardized and rigid operating structure and more reporting and recordkeeping requirements than LLCs. LLC owners have greater flexibility in how they run their business. Taxwise, LLCs have more options than corporations.
The best tax classification for an LLC depends on whether you want your business profits to be taxed at your personal income tax rate, or at the corporate tax rate. If youd prefer personal tax rates, you can classify it as a disregarded entity or as a partnership. Otherwise, you can classify it as a corporation.
In general, corporations have a more standardized and rigid operating structure and more reporting and recordkeeping requirements than LLCs. LLC owners have greater flexibility in how they run their business. Taxwise, LLCs have more options than corporations.

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