It has no AE&P, only AAA and Additional Paid in Capital (additional basis on stock).
Small business corporations are either C or S corporations — these designations refer to the subchapters of the tax code that governs them.
C corporations are governed by 26 USC Chapter 1, Subchapter C - Corporate Distributions and Adjustments.
Although C corporations are the most expensive entity to start, operate, and maintain, they do have many advantages.
A C corporation can offer many fringe benefits that are taxed less than they would be under sole proprietorships, partnerships, limited liability companies (), and S corporations.
For an S that's always been an S, they don't go on a 1099-DIV.
In that case, they show up just as a normal property distribution; there's no distinction between liquidating and non-liquidating.
Any distribution in excess of basis for an S that's always been an S is automatically capital gains.
Hi Phoebe, An S corp is liquidating with cash only.
Many C corporation benefits, such as health insurance, are not subject to either ordinary income taxes or employment taxes, while fringe benefits offered by other business entities are always subject to employment taxes.