In order to operate your business as an S corp, you must satisfy some requirements first. In particular, your company must:
- Be a domestic corporation
- Have appropriate shareholders, such as individuals, certain trusts, and estates. However, partnerships, corporations or non-resident alien shareholders may not be 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).
If you satisfy these requirements, then you can fileto elect S corporation treatment by the IRS. Note that the form must be signed by all the shareholders.
When it comes time to filing your taxes check out thisfrom the IRS website. As you can see, tax season can be overwhelming for s-corp owners.
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