The Congress is proposing some changes to the law that governs S-Corporations including:

1. changes to the way “Passive Income” is classified and taxed (eliminating the hidden “double taxation” by classifying dividend income correctly).
2. allow more than one class of stock.
3. allow non-resident aliens to become shareholders.
4. allow flexibility in the 75 day deadline to file for an S-Corporation.

Overall, I think all these changes would be great, which is all the more reason to form an s-corporation today!

You can view the full text of the proposed changes here.

(via Dr. Cornwall)

This entry was posted on Wednesday, July 5th, 2006 at 1:20 pm and is filed under Incorporation, Small Business News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.