Many of the C corporation rules and regulations are applied to S corporations. 9. individuals who are citizens or resident aliens of the US 10. An S corporation can own stock in another C corporation, or have an S corporate subsidiary. Individuals each count as one - Husband and wife count as one.
Divorce changes to two shareholders.
Use Form 2553 To be effective for current year, the election must be filed by the 15 th day of the 3 rd month. If made after this date, election applies to next year. All shareholders must consent to be taxed as an S corporation. Only those shareholders holding stock on the date of the election must consent. A. Follow those of partnerships for federal income tax purposes.