S-Corporation Rules

Some business owners opt for "S-Corporation" status for their corporation to help reduce the self-employed taxes they pay.  There are are few rules that have to be met to do this.  A corporation is S-corporation eligible if:

• the corporation has no more than 100 shareholders,
• the corporation has shareholders who are all individuals (exceptions are made for various tax exempt organizations, estates, and trusts)
• the corporation has no nonresident aliens as shareholders (non-US citizen or non-green card holder), and
• the corporation has only one class of stock.

Contact Mark D. Walters