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(Also referred to as an S Election) – The election by stockholders of a company or LLC Members with one or more U.S. citizens or permanent residents that results in the passing-through of a Corporation’s taxable income to the stockholders. Trusts, Corporations and non-U.S. citizens cannot be stockholders or LLC Members without disqualifying the S Election.
When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go