S-Corp Faqs
- May not have more than 100 shareholders.
- All shareholders must be U.S. citizens or residents however, some authorized trusts, estates and charitable organizations may be shareholders.
- Must be a Domestic Corporation.
- Maintain only one class of stock.
- Must use a calendar year as it fiscal year unless it can provide proof it satisfies a business need.
The main reason to elect for S-Corporation status is to avoid the potential double taxation of a General for Profit Corporation. With an S-Corporation all the profits of the business pass thru the business to the shareholders who report the profits with their individual tax returns.
- General For Profit Corporations.
- Professional Corporations.
- Limited Liability Companies (LLC).