Page 7 - Incorporatoin Services

Comparison of Forms of Business

Type of Business How It Is Formed Where Income and Deductions are Reported

S corporation Formed as Some items taken in account in figuring trade or

corporation under business income directly on Form 1120S
state law, tax status (allocable amount claimed on partners Schedule
elected by filing with E), separately stated items are passed through to

IRS partners and claimed in places of partners tax
return

C corporation Formed under state Claimed by corporations in figuring its trade or

law business income on Form 1120

Employee No ownership Income reported as wages, deductions as

interest itemized deductions on Schedule A (certain
expenses first figured on Form 2106)

Independent No ownership Claimed on individuals Schedule C

Contractor interest in a business