Profits and losses from an S Corp are reported by its shareholders on their individual tax returns and taxed at those filers’ marginal rates. When a C corporation pays dividends to its shareholders, it accrues double taxation.
There are requirements that must be met before a small business may file a 2553 form online and choose to register as an S Corporation. Some of these conditions:
The final criterion is that the company must use or switch to one of the following tax years:
Some corporations are banned from submitting 2553 forms online. To name a few of these companies: