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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Brilliant video! Our business is an S Corp 👍

westirons
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Amazing straightforward explanation. I'm searchinig for info on S Corps and had to start at the beginning due to very limited knowledge. I feel better equipped to dive into other aspects of S Corp now that I've seen your video. Thank you! Great job!!

sbutler
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Great video. Would you consider making a video on accounting PhD? Both the process and what career it can lead to?

lightorchestrator
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Do you have videos on requirements for sole prop partnership and LLC? Thanks

jxbx
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Thank you for this video. Any chance in the future you will cover the topic of reasonable salary in an S-Corp?

espresso