S Corporation Formation Requirements
In order to become a S corporation, it must fulfill certain criteria including the following:
- Shareholders cannot exceed 100 and must be allowable, (may be individuals but may not be partnerships, corporations or non-resident shareholders)
- Must be a domestic corporation
- Cannot be C corporations, other S corporations, limited liability companies (LLCs), partnerships or certain trusts.
After you file your certificate of corporation, Form 2553 must be filed with the IRS in order to elect S corporation status. S corporations are required to adopt bylaws, hold initial meeting of directors and shareholders.
Please note that a S corporation can lose its tax status if any of the above rules are broken.
For more information on S corporations, please do not hesitate to contact our team on 800-426-2327 or email firstname.lastname@example.org
Your Liabilities as a S Corporation