![]() ![]() In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation signed by all the shareholders. certain financial institutions, insurance companies, and domestic international sales corporations). Not be an ineligible corporation (i.e.May not be partnerships, corporations or non-resident alien shareholders.May be individuals, certain trusts, and estates and.To qualify for S corporation status, the corporation must meet the following requirements: S corporations are responsible for tax on certain built-in gains and passive income at the entity level. This allows S corporations to avoid double taxation on the corporate income. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. ![]()
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