An S corporation is a “small business corporation” which has made an election under § 1362(a)
In order to qualify for S corporation status, it must not:
- Have more than one class of stock,
- Have more than 100 shareholders,
- Have a shareholder that is not a US citizen,
- Have as a shareholder a person who is not an individual (with some small exceptions)
In S-corporations the shareholders report the business loss or income on their individual tax returns. The income is taxed on at the shareholder level. There is no additional taxation at the corporate level.
To file for S corporation status in New York State, your business must file Form 2553, and CT-6 to elect S corporation status.