Category: Tax Status

Subchapter T: The Most Common Tax Status for Co-ops The Subchapter T designation is designed specifically to address the unique nature of cooperative income. It allows a co-op to pay taxes only on the income

Subchapter C: An Income-driven Tax Status for Corporations Subchapter C is the default tax status for corporations, and it also applies to LLCs that choose to be taxed as corporations. Companies that use Subchapter C

Subchapter K: A Tax Status for Partnerships The Subchapter K tax status, also known as “Partnership Taxation” prevents a business from being taxed at the federal level. Instead, it passes through all income and losses

Subchapter S: An Alternative Tax Status for Corporations The Subchapter S (S-Corp) tax status offers small businesses and LLC owners the benefit of avoiding double taxation and treating LLC owners as W-2 employees. For cooperatives qualifying for