What Are The Legal Requirements Of An S Corp?
A S corporation must meet the following legal requirements:
- Be a domestic corporation
- Have only allowable shareholders, including individuals, certain trusts, and estates and
- Not more than 100 shareholders
- Have only one class of stock
- Not be an investment company
- Not be an international sales corporation
- Elect to be taxed as an S corporation by filing Form 2553 with the IRS.
Additionally, S corporations must adhere to corporate formalities such as holding shareholder and director meetings, and keeping minutes of those meetings.