S. Co. Inc. V.
1. What was the issue in the case?
2. How did the Court decide the issue?
The court affirmed. Business income generated by S corporations flowed directly to appellants for taxation purposes and retained status as it passed to appellants. Appellants availed themselves of Ohio's benefits and opportunities by earning income through Subchapter S corporations. The S corporations' business activity removed appellants from immunity ((LINCCWeb Catalog Search, n.d.).
3. What was the Court's reasoning for its decision?
Appellants' argument is flawed because it assumes that distributive income from an S corporation is nonbusiness income. This characterization ignores the true nature of the income that appellants receive from their S corporations. Section
2. How did the Court decide the issue?
The court affirmed. Business income generated by S corporations flowed directly to appellants for taxation purposes and retained status as it passed to appellants. Appellants availed themselves of Ohio's benefits and opportunities by earning income through Subchapter S corporations. The S corporations' business activity removed appellants from immunity ((LINCCWeb Catalog Search, n.d.).
3. What was the Court's reasoning for its decision?
Appellants' argument is flawed because it assumes that distributive income from an S corporation is nonbusiness income. This characterization ignores the true nature of the income that appellants receive from their S corporations. Section