How to Find the Status of Your Corporation to be a C Corp. or an S Corp.

Corporate status depends on the financial structure of the corporation.

Corporations must start out as C Corporations. Depending on their corporate structure, they have a chance to elect status as an S Corporation. An S Corporation must follow the taxation rules of Subchapter S of the Internal Revenue Code. Even if a company elects S Corporation status, the second it no longer qualifies as an S Corporation, then the company will revert back to a C Corporation. As such, the corporation should first see if it qualifies as an S Corporation and then see if they filed a Form 2553 with the Internal Revenue Service.

Instructions

1. Check if your corporation is a domestic or international corporation. If the corporation is an international corporation, then it will be a C Corporation.

2. Research your shareholders. To be an S Corporation, you cannot have more than 100 shareholders. In addition, shareholders can only be individuals, trusts or estates. The owners cannot include among their ranks nonresident aliens, partnerships or other corporations. If any of these conditions apply, then the corporation is a C Corporation.

3. Determine if the company has different classes of stock. S Corporations can only have one class of stock.

4. Search your tax records to see if you filed Form 2553. If you cannot find the form, or do not know if the Internal Revenue Service accepted your form, you can call the Internal Revenue Service at 800-829-4933 to inquire about your status.

References

• IRS: S Corporation
• IRS: Form 2553
• IRS: Form 2553 Instructions