| What requirements must be met in order to qualify as an S-Corporation?
The IRS has set some strict requirements that must be met in order to qualify for an S-Corporation Status. These are that a Regular Corporation must meet all of the following conditions:
-The Corporation must be a U.S. corporation.
-The Corporation must not have more than 100 shareholders.
-The Corporation must not have more than one class of stock.
-The Corporation must have shareholders who are only individuals, estates or certain qualified trusts.
-The Corporation must have all its shareholders "consent in writing" to the S-Corporation election.
-The Corporation must not have a shareholder who is a non-resident alien.
A failure to meet any of the above requirements will result in an automatic denial of an S-Corporation status.
Also, it is worth noting, that if during the tax year, a failure to meet any of the following conditions could also result in a possible revocation of the S-Corporation status at any time.
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