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Forming an S Corporation in Mississippi - Research Paper Example
Author : nicolasmilton
Engineering and Construction
Pages 8 (2008 words)
Forming S Corporation in Mississippi Name: Instructor: Task: Date: Forming an S Corporation in Mississippi Introduction An S corporation is an organization that is entitled to deliver corporate income, losses, deductions and credits to their shareholders for federal tax determination…
The S corporations are liable for tax on individual, integrated gains and passive returns (Goldstein & Davidson, 1992). Necessary documentation, filling fees, and filing For an entity to qualify for S corporation status, it must be a domestic corporation with shareholders, defined trust, and estates and should not constitute partnerships, corporations or nonresident foreign shareholders. Furthermore, it should not have more than 100 members, have one kind of stock, and not be an ineligible business entity (McQuown, 2004). In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF format) signed by the owners. The Mississippi S Corporations are for those who focus on the limited liability and the bureaucratic composition of corporations but containing a pass-through taxation of the business earnings (McQuown, 2004). The Mississippi S Corporation is simply a set business that becomes an S Corporation when its shareholders elect the outstanding tax status with the Internal Revenue Service (IRS) by filing an Internal Revenue Service’s Form 2553filed with the Internal Revenue Service (McQuown, 2004). This form is for electing tax categories. This is a mandatory requirement outlined in the state laws of Mississippi and the federal laws. ...