The S Corporation is a legal entity that only exists in the United States of America and is a product of tax identification by the Internal Revenue Service, where the taxpayer elects to have the corporate entity receive S corporation tax treatment. S-Corps pass-through their corporate income, losses, deductions and credits to their shareholders for federal tax purposes. Their shareholders report the flow-through income and losses from their S-corp on their personal tax returns and are assessed tax at their individual income tax rates. S corps thus avoid double taxation on the corporate income, while the company is responsible for tax on certain built-in gains and passive income at the entity level. S corp requirements include: - domestic corporation - only allowable shareholders (individuals, certain trusts and estates; but not partnerships, corporations or non-resident alien shareholders) - 100 shareholder limit - 1 class of stock only - not an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations) ** An excellent read on S-corporations is Steve Carlson's "S-Corporation Beginner's Guide, Updated Edition" - https://amzn.to/3GNs8Br ** For more practical insights pertaining to incorporating a business as a company visit us at http://www.LawyerIncorporation.com and for more expansive insights into our law firm's legal practice visit us at http://www.neufeldlegal.com. ** PLEASE NOTE: This is attorney advertising that is provide solely for informational purposes. The video only addresses very general aspects, without delving into specifics, which are absolutely critical to any legal analysis and approach. As such, it is ALWAYS recommended to engage the services of a knowledgeable lawyer to address the specifics of your particular situation, as this will dictate how you should approach any business or legal matter. Your receipt of such information does not create a solicitor-client relationship with Neufeld Legal PC or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice. Prior results referred to in these materials do not guarantee or suggest a similar result in other matters. #scorporation