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. A Sub S corporation is still required to file an informational tax return, even though it 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.
SmallBiZ.com will prepare the IRS Form 2553 (for your signature and subsequent transmittal) necessary for you to obtain your corporation's S designation from the IRS for only $15.00! If you would like this service, click here.
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 Sub S status with the IRS.