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 700 Sov Formpdffillercom 2016

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how to form an S corporation both C corporations and S corporations are born the same way by filing Articles of Incorporation with the state in which the business will be located there are four important restrictions to take note of when considering forming an S corporation entity your S corporation must be a domestic business there is a limitation on the number of allowed shareholders there are limitations on who can be a shareholder your S corporation can only have one class of stock while the restrictions that come with establishing an S corp would affect some businesses it rarely gets in the way for the vast majority of its corporations it is important to note that an S corporation is the only business entity in which you can lose your entity tax status and violating just one of the four restrictions tied to S Corp entities would be the fastest way to do so always make sure that your S corporation does not one have more than a hundred shareholders two become a foreign business thre

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