S Corporation Overview

The "S" Corporation refers to a section of the Internal Revenue Code. This election allows business owners to report company profits or losses on their individual tax returns. This business structure also provides owners the opportunity to separate and protect their personal assets from judgments against the business.

To form an S Corporation, a business owner first creates a general corporation to separate and protect their personal assets. Shareholders may then apply for the special "S" Corporation tax status through the Internal Revenue Service (IRS). This status avoids the "double taxation" of a C Corporation by allowing owners to report their share of profits or losses on their individual tax returns.

Only individual U.S. citizens or residents may own an S Corporation. Unlike other types of business structures, an S Corporation may have a maximum of 100 shareholders.

Form your new S Corporation today.

Why elect S Corporation status?

• You can sell stock to investors to raise capital.
• You can avoid the "double taxation" of a C Corporation.
• Shareholders can report company profits or losses on their individual tax returns.

Looking for a fast and simple way to form an S Corporation? Call our Business Specialists at 1-800-499-9519 (toll-free) or 1-302-636-5460.