what tax issues should a s corporation consider
In contrast to the default classification of an LLC as a pass-through entity, by default, a corporation is considered to be a separate taxpaying entity. Therefore, a corporation must file a separate tax return, Form 1120, and pay its own taxes.Salary for the corporation's employees, including owner/employees, is reported on their own tax returns, as are any corporate dividends and distributions.elf-employment taxes are one aspect to consider when comparing an LLC to a corporation. Often, the tax implications of paying Social Security and Medicare taxes is not a significant difference between the two organizational choices.