Services:
Federal & State S-Corporation Election - $35.00
An S-Corporation or S-corp., for Federal income tax purposes, is a corporation
that makes a valid election to be taxed under Subchapter S of Chapter 1 of
the Internal Revenue Code. In general, an S-Corporation does not pay any
income taxes. Instead, the corporation's income or losses are divided among and
passed through to its shareholders. The shareholders must then report the income
or loss on their own individual income tax returns.
In order to make an election to be treated as an S-corporation, the entity:
- Must be an eligible entity (a domestic corporation, or a limited liability company).
- Must not have more than 100 shareholders.
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Shareholders must be U.S. citizens or residents, and must be physical entities
(a person), so corporate shareholders and partnerships are to be excluded.
However, certain tax-exempt corporations, notably 501(c)(3) corporations,
are permitted to be shareholders. - Must have only one class of stock.
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Profits and losses must be allocated to shareholders proportionately to
each one's interest in the business.
B.S.G will make the election for you. For further information, consult our
Entity Comparison Chart, or contact a B.S.G Representative.