All states provide mechanisms for a qualification of foreign corporations. A corporation is a separate entity and has various obligations to file franchise tax reports, etc. Entity continues regardless of share transfer or redemption. An S Corporation is a creature of federal tax law and, for state law purposes, is indistinguishable from the corporation that does not elect S corporation status. In return for this benefit, the Internal Revenue Code imposes certain restrictions and limitations.
Shareholders generally have no liability for obligations of the corporation.
Can only be one class of stock. As with the partnership, the Subchapter S Corporation files an informational return. Profits and losses of the enterprise are reflected on the individual returns of the shareholders. Management and Control. Management and control do not differ from other corporations.