Personal Service Corporation Examples. Shareholders in a qualified personal service corporation must provide at least 20% of the corporation's services. The advantages of setting up a personal service corporation:
Also, fringe benefits given to personal service corporation owners are tax deductible, while the irs taxes the value of the same benefits given to llc owners. In addition, though, the irs has recently added actuaries, performing … What is a professional service corporation?
The income test can be met if 60 percent or more of the corporation's adjusted gross income (agi) is income from the phc.
Tax case n 1987 congress amended the tax law to provide that a personal service corporation (psc) is not eligible for graduated corporate tax rates. A personal service corporation, also called a professional service corporation, is a corporate entity formed by individuals who provide personal services for their clients. Examples of such corporations are health and attorney industries, etc. A personal services corporation is a canadian tax designation for a corporation where the shareholder would be considered an employee if it weren't for the corporate structure.