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Qualifying for S Corporation Status
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A corporation can elect to be treated as an S corporation by filing Form 2553 with the IRS. But not all corporations meet the requirements to make an S corp election.
To be treated as an S corporation, the corporation must:
(1) be a domestic corporation
(2) not be an ineligible corporation
(3) have only one class of stock
(4) have no more than 100 shareholders
(5) not have any shareholders that are C corporations, partnerships, or certain other entity types
(6) not have any shareholders who are nonresident aliens
0:00 Introduction
0:38 Domestic corporation
1:08 Not an ineligible corporation
1:38 One class of stock
2:48 Max 100 shareholders
4:17 Certain entities can't be shareholders
5:47 Nonresident aliens can't be shareholders
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Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
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SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
—
SUPPORT EDSPIRA ON PATREON
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
—
LISTEN TO THE SCHEME PODCAST
—
GET TAX TIPS ON TIKTOK
—
ACCESS INDEX OF VIDEOS
—
CONNECT WITH EDSPIRA
—
CONNECT WITH MICHAEL
—
ABOUT EDSPIRA AND ITS CREATOR
To be treated as an S corporation, the corporation must:
(1) be a domestic corporation
(2) not be an ineligible corporation
(3) have only one class of stock
(4) have no more than 100 shareholders
(5) not have any shareholders that are C corporations, partnerships, or certain other entity types
(6) not have any shareholders who are nonresident aliens
0:00 Introduction
0:38 Domestic corporation
1:08 Not an ineligible corporation
1:38 One class of stock
2:48 Max 100 shareholders
4:17 Certain entities can't be shareholders
5:47 Nonresident aliens can't be shareholders
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
—
SUPPORT EDSPIRA ON PATREON
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
—
LISTEN TO THE SCHEME PODCAST
—
GET TAX TIPS ON TIKTOK
—
ACCESS INDEX OF VIDEOS
—
CONNECT WITH EDSPIRA
—
CONNECT WITH MICHAEL
—
ABOUT EDSPIRA AND ITS CREATOR
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