Subchapter S Corporation Tax Status

Overview of the Subchapter S Corporation Designation
Although the term Subchapter S Corporation sounds as if it applies to a certain type of company, in actuality, it is merely a term used by the IRS (Internal Revenue Service) to designate a particular tax status. Almost any company that is comprised of 75 or less shareholders can apply for the Subchapter S Corporation tax status designation. Being approved for a Subchapter S Corporation status allows the company to be taxed as if it were a partnership or sole proprietorship. An application is generally submitted just after a company has incorporated. At any time a company may choose to withdraw from Subchapter S Corporation tax status by filing another form with the IRS. Withdrawals must be submitted prior to th View the rest of this article