Ace trucking co inc is chartered in michigan it has 100

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Reference no: EM13394114

1. To qualify as an S corporation there is no limit to the number of shareholders.

2. A corporation with more than 50 shareholders will not qualify for the S election.

3. Ace Trucking Co., Inc. is chartered in Michigan. It has 100 shares of common stock and 200 shares of preferred stock outstanding which are held by three individuals who also live in Michigan. The corporation owns no subsidiaries.This corporation qualifies for the S election.

4. A corporation with two classes of stock cannot qualify under Subchapter S for the election not to be taxed.

5. If a corporation fails to make a timely S election, an extension of time to make the election may be granted.

6. A calendar year corporation that meets certain requirements and wishes not to be taxed as a corporation for 2013 must make an S election

7. An S corporation cannot be subject to an income tax.

8. An electing S corporation is entitled to the dividends received deduction.

9. A shareholder's stock basis in an S corporation is increased by his or her share of the corporation's separately stated and non-separately computed items of income.

10. If a shareholder of an S corporation has a tax year different from that of the corporation, he or she must report any distributions of current year's taxable income in the year he or she actually receives the distribution.

11. Any incorporated business can elect to be taxed as an S corporation.

12. Since S corporations are corporations, they are subject to the accumulated earnings tax, personal holding company tax, and alternative minimum tax.

13. A corporation cannot elect S status if it has as a shareholder a corporation or partnership.

14. A corporation that wants to elect and retain S corporation status can at no time have 100 shareholders.

15. All members of the same family are treated as one shareholder in an S corporation.

16. A corporation cannot qualify as an S corporation if it has more than one class of stock.

17. A corporation eligible to be an S corporation is automatically treated as such by the IRS.

18. A corporation's S status can only be terminated by having all shareholders revoke the S election.

19. Once filed, an S corporation cannot rescind a revocation.

Reference no: EM13394114

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