The S corporation must pay estimated tax payments if corporate level taxes apply. No Double Tax On Profits An S corporation conducts business as a corporation, but is taxed in the same manner as a partnership. A major advantage of an S corporation is that income passed through to shareholders avoids the double taxation that occurs with a C corporation. A corporation can elect S corporation status by filing Form 2553, Election by a Small Business Corporation. Limited to 75 shareholders.
Corporation can have only one class of stock.
Must be a domestic corporation. Shareholders must be citizens or residents of the United States. Corporation must use a permitted tax year, or elect to use a tax year other than a permitted tax year. Only individuals, estates, certain trusts, and certain charities may be shareholders. If you have questions or comments about this web site click here .