Friday, March 19, 2010

S Corporation Requirements

To qualify for S corporation status, the corporation must meet the following requirements or they will not be considered by the IRS to be a S Corporation:

  • 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. 

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.