The Michigan Election of 'S' Corporation Status refers to the process by which a corporation in Michigan can elect to be treated as an S corporation for federal tax purposes. This election is governed by the IRS 2553 form, which contains the necessary instructions for completing the election. An S corporation is a special type of corporation that allows for pass-through taxation. This means that the corporation's income, deductions, and credits are passed through to the shareholders and reported on their individual tax returns. This allows for avoiding the double taxation that can occur with regular C corporations. To elect S corporation status in Michigan, the corporation must first meet certain eligibility requirements. For example, it must be a domestic corporation and have no more than 100 shareholders. Additionally, all shareholders must be individuals, estates, certain trusts, or qualified tax-exempt organizations. Non-resident aliens cannot be shareholders. The corporation must download IRS Form 2553 from the IRS website and complete it according to the provided instructions. The form requires information about the corporation's name, address, EIN (Employer Identification Number), fiscal year, and the date the election is being made. It also requires the name, address, and taxpayer identification number of the person designated as the responsible party. There are a few different types of Michigan Election of 'S' Corporation Status that may be relevant. One is the initial election, which is made within the first two months and fifteen days of the corporation's existence. Another is a late election, which is made after the initial election period has passed but within three years and 75 days of the effective date of the election. There's also a deemed election, which occurs when a corporation has been operating as an S corporation without making a formal election. It's important for corporations in Michigan to carefully follow the instructions provided on the IRS 2553 form when electing S corporation status. Failure to properly complete the form or meet the eligibility requirements can result in the election being rejected or invalidated. Seeking professional tax advice is recommended to ensure compliance with all regulations and maximize the benefits of electing S corporation status.