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Business Facts

  • There are 28 million small businesses in the U.S. -- which outnumber corporations 1162 to 1.
  • 70% of small businesses are owned and operated by a single person.
  • Small businesses employ 57% of the country's private workforce.
  • Small businesses pay 44% of U.S. payroll.
  • Only 50% of businesses survive five years.
  • Immigrants make up 12.5% of small business owners nationwide.
  • 60 to 80% of all new jobs come from small businesses.

For further assistance with filing an SCorp Election or questions regarding the process please contact our  specialists at 888-300-3039.

S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.

Qualifications

  • Must be a liability entity (a domestic corporation which has elected to be taxed as a corporation).

  • Must have only one class of stock.

  • Must not have more than 100 shareholders.

  • Shareholders must be U.S. citizens or
    residents, and must be natural persons, so corporate shareholders and
    partnerships are generally excluded. However, certain trusts, estates, and
    tax-exempt corporations, notably 501(c)(3) corporations, are permitted to be
    shareholders.

  • Profits and losses must be allocated
    to shareholders proportionately to each one's interest in the business.

S-Corp Election