How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jacy Your Own Question
Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
Experience:  Nine years individual income tax preparation and consulting
Type Your Tax Question Here...
Jacy is online now
A new question is answered every 9 seconds

Hi, I just had someone contact me requesting I do a business

This answer was rated:


I just had someone contact me requesting I do a business tax return for them. They describe their business as: "It is a LLC as a Chapter S Corporation"?

Is that possible? If so, how does that work?


Chat Conversation Started
Jacy :


Customer: replied 6 years ago.



This means you need to prepare an 1120S return. This return has K-1's which pass the income of the corporation to the shareholders (like a partnership).


Hope this is helpful to you



Jacy and 5 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Okay thank you. I've never heard of a business having to different classifications before. Is that common?

Yes, very common. the "S" stands for small. A corporation has to have less 30 shareholders to qualify.


Thanks again for your question!

Customer: replied 6 years ago.
Actually I was it common for a company to be an LLC and an S Corp?
I don't know how common it is. I do mostly individual income taxes so when someone tells me they have an LLC, I always ask what their business structure is: Sole prop., partnership, or corporation.

Related Tax Questions