Did you know? An eligible domestic corporation can avoid double taxation by electing to be treated as an S Corporation. Double Taxation to Corporations means once to the shareholders and again to the corporation. If you are a small business owner this is something that you may want to consider. There are several factors to consider before you can apply for an S Corp election. To qualify for an S corporation status, the corporation must meet the following requirements: Be a domestic corporation Have only allowable shareholders including individuals, certain trust, and estates and may not include partnerships, corporations or non-resident alien shareholders Have no more than 100 shareholders Have one class of stock Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations. If your business decides to become an S Corp you will need to fill out Form 2553 . You can learn more about the S Corp electio...
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