HOW TO QUALIFY FOR S CORP STATUS
Considering filing for Subchapter or Small Business Corporation (S Corp) to qualify, the IRS states your business must:
Be a domestic corporation
Not be an ineligible corporation (there are a few businesses such as financial institutions, insurance companies, and domestic international sales corporations that don’t qualify)
Have no more than 100 shareholders
Have only allowable shareholders – which may include individuals, certain trusts, and estates, but it can’t include partnerships, corporations, or non-resident alien shareholders.
Have only one class of stock
Forming a S Corporation can provide your business with a number of benefits, if your business meets the criteria.
PROS & CONS OF A BUSINESS
Form a business is a big step and there are both positive and negative to consider.
No legal liability — You are not personally liable for any debts or liabilities that your business incurs. You’ll be able to separate yourself from your business.
9 TEAM-BUILDING STRATEGIES
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