What is a Personal Service Corporation? | IRS Definition of a Personal Service Corporation

14 Dec 2021
23 ITN FAQ ENTITY PSCORP What is a Personal Service Corporation IRS Definition of a Personal Service Corporation

What exactly is a personal service corporation in the eyes of the Internal Revenue Service? When you think about a personal service corporation, you need to be thinking about its main purpose. As a personal service corporation, the goal of the corporation to provide something to individuals or groups of individuals. What the corporation is going to provide will include services that will include a variety of professional business tasks.

The Internal Revenue Service dictates what the professional business endeavors or services actually are based on their guidance. The personal service corporation, in the event, that it falls under these different endeavors, will end up qualifying to be that type of corporation to the Internal Revenue Service. When you qualify as a personal service corporation, you need to do other tasks to stay in compliance with the Internal Revenue Service. This includes things such as obtaining a Tax ID (EIN) number and other such tasks.