S Corporations may have tax advantages for U.S. taxpayers because the tax liability flows to the stockholders. Profits and losses are passed through to the individual stockholder's tax returns and are taxed at the individual rate. To create an S Corporation, first form a regular or close corporation, then apply to the Internal Revenue Service for S Corporation status within 75 days of forming the entity. S Corporations are as popular as Limited Liability Companies but enjoy different tax advantages. Please consult with your accountant to be sure you are selecting the best entity type for your needs.
The "S" corporation application (Form 2553) is included in the Deluxe Corporate Minute Book, or you can print a pdf version of the form from the link below.