For a new corporation,a premature S election may not be effective.

Name: For a new corporation,a premature S election may not be effective.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

For a new corporation, there are certain requirements that need to be met before making an S election. If these requirements are not met, the S election may not be effective, and the corporation may end up being taxed as a C corporation. Therefore, a premature S election may not be effective.

For a New Corporation,a Premature S Election May Not Be