The rise of remote work has transformed the way businesses operate, allowing companies to provide increased flexibility to their employees, while having the ability to hire from a global talent pool.  However, the shift towards remote work has also introduced a myriad of tax and compliance challenges that businesses need to be cognizant of.  

The S corporation is a popular option of tax classification for business owners.  As a pass-through entity S corporations are subject to a single layer of tax. In addition, the earnings and owner distributions are not subject to Social Security or Medicare taxes.  These are attractive prospects for owners looking to improve cashflow.  However, there are some key issues that can be overlooked when establishing and operating an S corporation.  

Ownership Restrictions