|Other titles||To amend revenue act relative to personal service corporations|
|The Physical Object|
A personal service corporation is a C corporation that performs services in the professions listed in Sec. (d)(2)(A) and substantially all of the stock of which (by value) is held directly or indirectly by . A personal service corporation is a company which, as the name suggests, provides personal services. These services span a wide variety of endeavors in many fields, and are specified for tax purposes in . Money › Taxes › Business Taxes Personal Service Corporations. To save on taxes, many professionals form a C corporation where they perform their services as IRS . The IRS applies a flat percent tax rate on personal service corporations, whereas most corporations use a graduated tax rate structure. The IRS allows personal service corporations to use the cash .
A personal service corporation exists as a qualified professional corporation that provides services in fields like accounting, architecture, law, medicine, the performing arts, consulting and engineering. A . There are benefits as a personal service corporation, including better tax rates and more control for shareholders, who also contribute their expertise to the business. Eligibility for Qualified Personal . A personal service corporation (PSC) generally is a corporation whose principal activity is the performance of personal services, and such services are performed by employee-owners Sec. . Personal service corporations have more tax deductions than LLCs. Both entities can deduct operating costs, equipment purchases and fringe benefits for employees as business expenses on their tax .
The obvious way to ensure that your small corporation is not deemed to be a personal services business at some point is to ensure that your corporation has more than five full-time employees throughout the . The IRS defines a personal service corporation as a company whose main work is to offer personal services to its clients. This includes services such as accounting, consulting, health, law, architecture, . TAX CASE n Congress amended the tax law to provide that a personal service corporation (PSC) is not eligible for graduated corporate tax rates. Pursuant to IRC section 11(b)(2), PSCs pay tax at the . For C corporations, the Republicans in House and Senate agreed upon a flat tax rate of 21% for corporations, this was slightly higher than the expected rate of 20%, and much higher than the plan .