A partnership's backside string isn't the onliest notice of a clever investment; the event's corporate constitution as well goes a faraway hang-up In relation to determining what dividends you Testament reap. S-corporations, named after Internal Revenue Overhaul law Subchapter S, annex a regional vastness of shareholders and pass corporate taxes washed-up to definite shareholders' method taxes. Before investing your means, acquisition outside what the corporate status of that business is and how that will affect your eventual dividends.
Instructions
1. Find contact information for the Secretary of State, or the government office in charge of regulating commerce throughout the state, for the state in which the business in question was incorporated.
3. Read the business' articles of incorporation to determine the corporate status of the business. The corporate status, whether the business is a partnership, sole proprietor or an S-corporation, should be included with the articles of incorporation.
2. Contact the office of the Secretary of State in the business' state of original incorporation and ask to see a copy of the articles of incorporation, also known as the company's charter. After articles of incorporation have been filed, they become public record and may be accessed by any interested party. If there are no articles of incorporation to be accessed, then the business cannot be an S-corporation as it would need to be incorporated.
Also, look for the number of shareholders, which is also listed in the articles of incorporation. S-corporations are not allowed To possess more than 100 shareholders, so this is another good clue.
