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To qualify for S corporation status, the corporation must meet the following requirements: Be a domestic corporation. Have only allowable shareholders. ... Have no more than 100 shareholders. Have only one class of stock.
Most importantly, you must have no more than 100 shareholders to qualify as an S-corporation. You must also only have what the IRS defines as ?eligible shareholders,? meaning shareholders must be individuals, certain trusts or estates. Shareholders also must be U.S. citizens or legal residents.
To form a Wyoming S corp, you'll need to ensure your company has a Wyoming formal business structure (LLC or corporation), and then you can elect S corp tax designation. If you've already formed an LLC or corporation, file Form 2553 with the Internal Revenue Service (IRS) to designate S corp taxation status.
Wyoming requires a principal place of business and mailing address, these do not need to be physical addresses, but the registered agent does need one.
The main differences between Wyoming LLCs and Delaware LLCs are cost and reputation. Wyoming LLCs provide stronger privacy, stronger asset protection, and lower fees. Delaware LLCs are more expensive to maintain, but Delaware has the reputation of being home to Fortune 500 companies.
Advantages of an S corporation Limited liability protection. Owners are not typically responsible for business debts and liabilities. Pass-through taxation. No tax is paid at the business level on the corporation's profits. ... Unlimited life. ... Easy transfer of ownership. ... Easier to raise capital.
Form a Wyoming Corporation: Name Your Corporation. Designate a Registered Agent. Submit Articles of Incorporation. Get an EIN. Write Corporate Bylaws. Hold an Organizational Meeting. Open a Corporate Bank Account. File State Reports & Taxes.
Requirements and Limitations of S Corporations Specifically, to qualify for S corporation status, an entity must: Be a domestic LLC or corporation. Not be an ineligible corporation, such as certain financial institutions, insurance companies, and domestic international sales corporations. Have only one class of stock.