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These fees can sometimes run in the hundreds of dollars per year. Also, there can be filing fees for forming an LLC and annual fees for filing annual reports. An S corporation (S corp) is a type of business tax filing status that allows corporations to pass corporate income, losses, deductions, and credits through to their shareholders, but only if the business meets specific requirements.
So, an LLC that meets the requirements for S corporation taxes could pass these items onto its shareholders rather than make the owners report them on their individual income taxes.
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