Glossary • Updated 2026
S-Corp Election
Federal Form 2553 pass-through election: 1.5% California tax instead of LLC gross-receipts fees.
In detail
Deadline: 2 months 15 days into the tax year.
Requires W-2 reasonable compensation for owner-employees.
Wins for low-margin, high-receipts California businesses.
Where it matters
More definitions
Sources
- Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries