What is an S Corporation?
Advantages of Creating an S Corporation
An S corporation is treated by the federal tax system as a pass-through entity in the eyes of the IRS. To achieve this, your business must file Articles of Incorporation with the Secretary of State. Kentucky corporations are also required to file one copy of their Articles of Incorporation in the same county where the registered office is located.
Your company will then issue stock and the business will be governed as a corporation. The shareholders (those holding your stock) are the owners, but are protected from personal liability from the actions of the corporation. For instance, a shareholder’s personal property, bank accounts and other assets cannot be seized to pay off the corporation’s liabilities.
Income and losses are passed on to the shareholders. Each shareholder is responsible for the income or loss received by the corporation, on their own individual tax return. The S corporation eliminates double-taxation – once on the corporate level and once on the individual level, which happens with a regular corporation. Continue reading
McClure, McClure, & Bailey is the proud sponsor of an evening of local entertainment by legendary singer-songwriter and bestselling author, Gregg Allman.
On Friday, January 8th, Gregg Allman (of The Allman Brothers Band fame) will be arriving in Danville, Kentucky. This Rock and Roll Hall of Fame artist will take the stage at the Norton Center for the Arts that evening at 8:00 p.m. We hope to see you at the event. In the meantime, here’s a little sample of what the night might hold..
For tickets and more information, visit the Norton Center’s Webpage. We continue to support our local community in all ways, from our donations to the arts to our legal services to local citizens.
Brian Bailey of McClure, McClure, & Bailey is helping entrepreneur Douglas Thornburg II, owner of Southern Safety Innovation Corporation find a location for a new manufacturing facility in the Rockcastle County Industrial Park. Brian Bailey is dedicated to helping business grow. The proposal was outlined in this article from The Mount Vernon Signal, seen below:
What is a C Corporation?
Establishing a C Corporation
A C corporation is a separate legal business entity, the income of which is taxed through the corporation rather than through individual share holders, unlike S Corporations, which pass profits to shareholders who are then responsible for the tax burden of those profits on their personal tax returns. C corporations are named for Subchapter C of the Internal Revenue Code and C corporations are the default corporate type under that code. This means if another type of corporation is not specified, the entity will be a C corporation automatically when it incorporates. This is why C corporations are also called “regular” corporations.
A C corporation’s shareholders must elect a board of directors responsible for making decisions and overseeing policies for the entity. In most cases, a C corporation is required to report to the Kentucky State Attorney General on financial operations. The C corporation is viewed as an individual tax payer by the IRS. As such, C Corporations are subject to “double taxation” — being taxed once at the corporate level and again on the personal level when dividends are distributed to shareholders.
A major advantage of a C corporation is that its owners have limited liability and are not personally liable for any debts incurred by the entity and they cannot be sued individually for corporate wrongdoing. This “corporate veil” means shareholder liability is limited to their investments in the corporation. Additionally, since the corporation is an independent entity, it does not cease to exist when the owners/shareholders change or die. Continue reading
Brian Bailey meets with the Rockcastle Fiscal Court to help a would-be Rockcastle County Business owned by Douglas N. Thornburg II, establish itself and grow. For more information, read this article in the Mount Vernon Signal from July 16, 2015:
The McClure Family has been active in the Danville and Boyle County area for generations. Case in point: This video from 1940 showcasing Patrick McClure‘s great-grandfather (and George M. McClure, III‘s grandfather), George M. McClure, Sr, who lived to be 105, and was a graduate of the Kentucky School for the Deaf and Centre College.
George M. McClure, Sr. was also a teacher and an administrator at the Kentucky School for the Deaf beginning in 1880 and continuing for 67 years. Below is a video of Mr. McClure from 1940.
Gallaudet University’s Video Catalog includes this video, called, Reminiscences by Dr. George M. McClure of Kentucky in which Dr. McClure shares the history of how the Kentucky School for the Deaf in Danville, Kentucky (Boyle County) became one of the first state-supported deaf schools in the country.