Читать книгу Small Business Taxes For Dummies - Eric Tyson - Страница 60

All corporations actually begin as so-called C corporations, which are the corporations discussed in the section “Deciding whether to incorporate” earlier in this chapter. To become an S corporation, your business must go through an additional “tax election” step. See IRS Form 2553, “Election by a Small Business Corporation.”

U.S. tax laws allow most, but not all, small businesses to be taxed as an S corporation. To be an S corporation in the eyes of the almighty IRS, a company must meet all the following requirements:

 Be a U.S. company

 Have just one class of stock

 Have no more than 100 shareholders who are all U.S. residents or citizens and aren’t partnerships, other corporations, or, with certain exceptions, trusts

Be sure to investigate limited liability companies (LLCs), the subject of a later section, before committing to forming an S corporation. LLCs offer the passing through of income that S corporations do and are generally simpler to initiate and operate. As the operator of an LLC, you can still have the future option of converting to an S corporation.