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).