How To Establish That Your Corporation Is A C Corporation
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How To Establish That Your Corporation Is A C Corporation
Chas Rampenthal (Attorney-at-Law) gives expert video advice on: How do I establish that my corporation is a C corporation?
How do I establish that my corporation is a C corporation?
There are two ways. Number one, do nothing. Every corporation, when it's initially established is a C corporation. The other way to do it is to blow your S corp election. So, if you indeed filed a valid and became an S corporation, if you do anything that is against the S corporation rules, like have more than a hundred shareholders or change your fiscal year end date from December 31 or start having separate classes of stock or shareholders that are not U.S. citizens or shareholders that are corporations or LLCs. As soon as you do any of that for that fiscal year, you're going to lose your S corp status and you will automatically be a C corp and unless you fall back in the S corp exceptions you won't be able to re-file for S corp status in the next fiscal year.
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