Here are some common Q&A’s we we’ve received from customers about their S Corporations.
Q: Can my non-profit corporation elect to be an S Corp?
A: No! Only for-profit corporations are eligible
Q: Can my LLC or another corporation own an S Corp?
A: No! Only permanent US residents can own an S Corporation. So, a corporation with an entity or non-US resident is not eligible.
Q: If I formed my corporation after March 15th, does that mean I cannot elect for that year?
A: No, you can elect for that “short” tax year effective the date you want, as long as that date follows the rules above, and it’s not earlier than 75 days from the date the IRS receives your Form 2553
Q: Once my corporation changes to an S corporation, can I switch back later if I want to?
A: Yes, but it aint easy. Talk to your accountant/CPA about the ins and outs of this.
Q: Can an LLC become an S Corp?
A: See my article on this, How to convert your LLC to an S Corporation?