BizTerm Definition
S Corp Election Assistance, Sub S Status Filing
Full Definition

S Corp Election Assistance ($15)
A Sub S corporation is a corporation which elects subchapter S tax treatment under the IRS's Internal Revenue Code. This allows the corporation's profits or losses to pass through to the shareholders and avoid double taxation. An S corporation is still required to file an informational tax return (1120S), even though the entity doesn't pay taxes.

Some restrictions include; maximum number of shareholders (75), shares cannot be owned by another corporation or partnership, and ownership limited to US citizens or resident aliens.

We will prepare the form (for your signature and subsequent mailing) necessary for you to obtain your corporation's Subchapter S designation from the IRS.

NOTE: Even if you ordered this service, YOU STILL MUST SIGN AND MAIL in the REQUIRED IRS Form #2553 in a timely fashion. If YOU do not, you will not be able to claim S Corp status with the IRS.

NOTE: Your state taxing agency may offer a tax preference for S corporations, which may require an additional application. Check with your state's Dept. of Revenue (or like agency) for further information.

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