Article Date:
October 2011

Word Count:



Tax Law Prohibits the Assignment of Income to Your S Corporation

Checks Must Come in the Corporate Name–No Exceptions


Do you receive the income and then endorse the checks to your S corporation? That’s a no-no.


Are the checks made out to your S corporation, but you receive a 1099 for the income? That’s a no-no.


Make sure your S corporation setup does not put you in no-no tax land.


Tax Planning Tragedy


To save self-employment taxes, some self-employed taxpayers and one-owner businesses change from a proprietorship to an S corporation.


When the change to the S corporation is done incorrectly, knowingly or unknowingly, the income can be taxed to the individual ... Log in to view full article.

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