Personal Service Corporation is a company whose principal activity is providing services in the field of health, law, engineering, architecture, accounting, actuary, science, performing arts, consulting. If these personal services are provided substantially by employers, owners, the company is considered to be a PSC and subject to certain rules and regulations. Rather, the owner or owners report items of income or loss on their individual income tax returns, resulting in a single level of taxation. Shareholders have elected to be taxed as a pass-through entity. Generally pass-through if IRS requirements for partner tax status.
Employees also have federal and state income taxes withheld.
Income and FICA and unemployment taxes withheld. Quarterly estimated tax payments may need to be paid on corporate income since it is taxable at shareholder level. Quarterly estimated tax payments on dividends received from the corporation. Same as limited partners. Deductible to corporation.