Subchapter S-Election

By IncNow | Published October 19, 2013

(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.

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