Answer:
An S-Corporation is a corporation with a limited number of shareholders that is afforded favorable tax treatment under the federal Internal Revenue Code. In brief, the corporation is not itself subject to taxation, but the individual shareholders consent to having the corporate profits taxed as income on their annual Forms 1040. In this regard, it is taxed much like a partnership.
A personal corporation or professional corporation (PC) is typically reserved for professionals (attorneys, doctors, dentists, accountants) who own their own businesses individually (like a sole proprietor), but wish some of the liability insulation afforded by a corporate existence. In these special corporations, it's often the case that the professional is shareholder, director, president, treasurer and clerk.
As for TINs, both an S-Corp. and a PC must have an EIN, and you would not use an individual's SSN. (The IRS permits a single-member LLC [not discussed here] to use the member's SSN.)
First published on BankersOnline.com 10/4/04
print
share