Personal Service Corporations

Generally, a Personal Service Corporation is a regular corporation whose activities are conducted in the field of health, law, engineering, architecture, accounting, actuarial science, performing arts or consulting. These services are primarily performed by owner-employees.

A Personal Service Corporation reports on a regular Form 1120, but is subject to a "flat" tax rate of 35% of all net income. In addition, it may be limited as to its option to choose a fiscal year rather than a calendar year.

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