Requirements Guide
S-Corp Requirements
Eligibility criteria for S Corporation status
S-Corp Eligibility
| Requirement | Details |
|---|---|
| Domestic Corporation | US-based only |
| 100 Shareholders Max | Individuals, trusts, estates |
| One Class of Stock | Common stock only |
| Calendar Year | Or IRS approval |
S-Corp vs LLC
S-Corp Benefits
Save SE tax on distributions
5-15% savings at higher income
S-Corp Downsides
Payroll, compliance, accounting
More complex than LLC