What should you consider when filing S corporation taxes?

Filing federal income tax as a S Corporation should be done when you want to claim all of your business income, losses, deductions and shareholder credits through your personal income tax to avoid double corporate taxation, according to the IRS. To qualify, an S corporation must adhere to certain restrictions.

An S corporation must be domestic, have only one class of stock and have no more than 100 shareholders including only individuals, and certain estates and trusts, states the IRS. In addition, it may not be an ineligible institution such as a financial or insurance company, and the shareholders may not include nonresident aliens, corporations or partnerships.