Marc A. Bronstein, A Professional Law Corporation

A “power of attorney” is a legal document granting authority to an individual, your "Agent," granting he or she the ability to make financial decisions decisions on your behalf should you become incapacitated. You can elect to grant some or all powers to your Agent and choose whether you want it to take effect immediately or upon your disability.

An S corporation is a corporation formed under state civil law or any business entity (such as a partnership or LLC that elects to be taxable as a corporation for tax purposes) that elects under federal law to be taxed under Subchapter S of the Internal Revenue Code. An entity that has elected to be taxable as an S corporation for federal tax purposes is also treated as an S corporation for California tax purposes. An S corporation generally offers liability protection to its owners (shareholders) and is a conduit where the profits or losses of the S corporation flow through to the shareholders, partners, or members. Liability of the owners for debts and obligations of the business depends on what type of entity the S corporation is under state civil law, e.g. corporation, partnership, or LLC. Key Features An entity must elect to be treated as an S corporation and is limited by the types of owners, which may not exceed 100 shareholders. An S corporation does not pay federal income tax. Under California law, the S corporation is subject to a 1.5 percent tax on its net income and is a conduit similar to a partnership. The items of income, deductions, and credits flow through from the S corporation to each shareholder through the California Schedule K-1, Shareholder’s Share of Income, Deductions, Credits, etc. Each shareholder is responsible for paying taxes on their pro rata share of the S corporation’s items of income, deductions, and credits. A separate bank account and separate records are required with this form of entity. The management structure of the S corporation will depend upon what type of entity it is under state civil law, e.g. corporation, partnership, or LLC. The shareholders of the corporation are not liable for the losses of the business, and creditors may only look to the corporation and its business assets for payment. S corporations are subject to the annual $800 minimum franchise tax.