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S Corporations, Explained - A Detailed S-Corp Guide For 2022

Curious about how an S corp works? We’ve got your answer: https://www.incfile.com/what-is-s-cor... An S corp is a type of business entity, and it’s also a tax designation. It can provide some tax relief to business owners, but only if you meet the requirements. If you want your business to be an S corp, you’ll have to remember the following: You can’t have more than 100 shareholders You cannot have foreign shareholders You may only have one class of stock If you meet the criteria, then you could file an S corp election. But be cautious, because if it isn’t done right, your status will be denied or revoked. Luckily, there’s a better way. Incfile can take care of filing your S corp designation for you, so you don’t need to worry.