IRS & State S Corporation election

Hotmale

Senior Member
Polish
Hello,

I am reading a text about company formation. Below the text I am given a list of some documents, one of them is IRS & State S Corporation election.
Even though I understand each part of this term, I cannot understand it as a whole. Could you explain what kind of document it is?

Thank you.
 
  • JamesM

    Senior Member
    An "S" corporation is a corporation whose primary income is derived from providing services of some kind. This includes doctors, lawyers, business consultants, and others. The rules for an "S" corporation are different from those for a typical corporation. I would assume an "S" Corporation Election form is a form sent to the IRS and your state taxing body that declares your business to be an "S" Corporation.

    Beyond that, I don't have much to offer. :)
     

    MissFit

    Senior Member
    If this is the title of the document, it is probably the document that must be filed in order for a corporation to be treated as an S Corporation by the IRS and the State.

    If I understand it correctly, being treated as an S corporation means that you avoid being taxed twice--once as a corporation, and again as individual shareholders. As an S corporation, the shareholders each report their share of the corporation's income on their individual income tax forms.
     

    Hotmale

    Senior Member
    Polish
    An "S" corporation is a corporation whose primary income is derived from providing services of some kind. This includes doctors, lawyers, business consultants, and others. The rules for an "S" corporation are different from those for a typical corporation. I would assume an "S" Corporation Election form is a form sent to the IRS and your state taxing body that declares your business to be an "S" Corporation.

    Beyond that, I don't have much to offer. :)
    Thanks a lot, James.
     

    Hotmale

    Senior Member
    Polish
    If this is the title of the document, it is probably the document that must be filed in order for a corporation to be treated as an S Corporation by the IRS and the State.

    If I understand it correctly, being treated as an S corporation means that you avoid being taxed twice--once as a corporation, and again as individual shareholders. As an S corporation, the shareholders each report their share of the corporation's income on their individual income tax forms.
    I see. Thanks a lot!
     
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