Full Video Transcript
An S-Corporation is one of the many forms of corporation that can be created by a new or existing business. The primary reason some businesses choose to be considered an S-Corporation is to obtain a tax benefit sometimes called carryover or roll over. This benefit allows the S-corporation to carry forward losses from one tax year into the next, and perhaps even for succeeding tax years after that. Businesses that expect to lose money in the first few years of operation often choose the form S-Corporation so they can carry forward business losses and use them to protect against taxes in the years when they do earn profits. Like any other legal entity, an S-Corporation carries various benefits and restrictions. For that reason, before choosing to form an S-corporation, it's wise to consult with an experienced lawyer and a tax professional. For more information, contact an attorney in your area today.