Incorporation 101: The Process of S-Corporation Election foamposites for cheap. - Hyperdunk 2012

Eligibility for S-Corporation StatusIn order to elect S corporation status, a corporation must satisfy the following requirements:* Must be a domestic corporation that is organized under the laws of any state or U.

S. territory,* Maintain only one class of stock,* Maintain a maximum of 100 shareholders,* Shareholders may only be individuals, estates or certain qualified trusts,* All shareholders must either be U jordan heels.S. citizens or legal residents.

S-Corporation Status ElectionThe election of S-Corporation status is made by filing a form called "Election by a Small Business Corporation" with the IRS Service Center, where the corporation files its corporate federal income tax return air yeezy glow in the dark . The election of the S corporation status must be unanimously approved by all of the shareholders by having all of them sign the "Election by a Small Business Corporation" form.

When Should the Election Be FiledIn order for the election to be effective as of the beginning of that tax year, election must be filed on or before the 15th day of the 3rd month of the corporation's tax year Hyperdunk 2012. For example, a corporation that is on acalendar tax year must file on or before March 15th in order for the election to be effective for that tax year.

Termination of S-Corporation StatusS-Corporation status can be terminated either voluntarily or involuntarily:* Voluntarily: an S-Corporation election may be voluntarily revoked with the consent of shareholders holding more than 50 percent of the outstanding shares of stock (voting and nonvoting) on the day the revocation is made.* Involuntarily: an S-Corporation status is involuntarily terminated if any of the disqualifying events occur. A disqualifying event is one that would prohibit the corporation from making the election in the first place.