S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.
To qualify for S corporation status, the corporation must meet the following requirements:
- Be a domestic corporation
- Have only allowable shareholders
- May be individuals, certain trusts, and estates and
- May not be partnerships, corporations or non-resident alien shareholders
- Have no more than 100 shareholders
- Have only one class of stock
- Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).
In order to become an S corporation, the corporation, we will submit Form 2553 Election by a Small Business Corporation (PDF) which must be signed by all the shareholders
Hello there, just became alert to your blog through
Google, and found that it is really informative.
I’m gonna watch out for brussels. I will be grateful if you continue this in future.
A lot of people will be benefited from your writing.
Cheers! Escape roomy lista
I like this web blog it’s a master piece! Glad I discovered this on google.?
I couldn’t resist commenting. Well written.
Hello there, I think your blog might be having internet browser compatibility issues. When I look at your blog in Safari, it looks fine however when opening in Internet Explorer, it has some overlapping issues. I merely wanted to give you a quick heads up! Apart from that, wonderful blog.
An outstanding share! I’ve just forwarded this onto a coworker who had been conducting a little homework on this. And he actually ordered me dinner simply because I found it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanks for spending some time to discuss this issue here on your web page.