S Corporation Update

S corporations are corporations that pass along corporate income or losses, deductions and credits to their shareholders for federal tax purposes. Shareholders of S corporations report the income or losses on their personal tax returns and are assessed tax at their individual income tax rates. To qualify for S corporation status, a corporation must meet the following requirements:

• Be a domestic corporation
• Have only allowable shareholders including individuals, certain trust, and estates and
• Does not include corporations, partnerships, non-resident alien shareholders
• Has no more than 100 shareholders
• Has only one class of stock

© 2009 by Michael C. Dennis.  All Rights Reserved.  Michael is the author of "Credit and Collection Handbook."