An S-Corporation is a type of corporation that is recognized by the U.S. Internal Revenue Service and is treated differently than other corporations in terms of Federal taxation. Some states also recognize S-corporation status for state income taxation purposes; some states do not. The only reason for becoming an S-corporation is to obtain a different [...]
Read More »The shareholders are the persons or other business entities who actually own the corporation. The corporation ownership is divided into shares of stock in the corporation. Each share may be sold to shareholders who are then issued a stock certificate that represents their ownership of a percentage of the corporation, represented by numbers of shares [...]
Read More »As explained in our Shareholders of an S-Corporation article, directors are elected by the shareholders at their annual meetings. Please note, however, that in the forms available on our site, the initial board of directors is specified in the Articles of Incorporation which are prepared and filed with the state. This listing of the directors [...]
Read More »To the officers of a corporation fall the responsibilities of running the business. Their powers, however, are dictated solely by the board of directors. Officers can be given very broad powers to transact virtually all business for the corporation, or they can be tightly limited in their authority. A single shareholder can act as both [...]
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