Generally, an S corporation is exempt from federal income tax, other than tax on certain capital gains and passive income. Shareholders must include their share of the corporation's income on their tax returns.
S corporations must file an Election of Small Business Corporation form to register with the IRS. S corporations and their shareholders must include special forms when filing their income and employment taxes.
For more information, contact:
Business Questions Hotline
Phone: (800) 829-4933