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What are the election date requirements for an S-Corp?

S corporations have various requirements for this type of entity to qualify for S status. All shareholders that own stock in the corporation will be taxed on their share of the company’s earnings and profits throughout the taxable year (even if those earnings and profits were not distributed during the year).

In addition, all shareholders who hold stock during the taxable year should consent to the S election and it should be made within 2.5 months of the first day of the taxable year. IRS Form 1120S will be filed for S corporations each year before the 15th day of the third month following the close of the taxable year. S corporations may file Form 7004 for automatic extension to the filing date for a six-month period of time. Additionally, if a corporation’s estimated tax liability is expected to be $500 or greater, the corporation will be subject to estimated tax payment requirements.


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