Common use of Election to be an S corporation Clause in Contracts

Election to be an S corporation. (i) Manner of making election. A small busi- ness corporation makes an election under section 1362(a) to be an S cor- poration by filing a completed Form 2553. The election form must be filed with the service center designated in the instructions applicable to Form 2553. The election is not valid unless all shareholders of the corporation at the time of the election consent to the election in the manner provided in paragraph (b) of this section. However, once a valid election is made, new shareholders need not consent to that election.