S corporations must satisfy federal eligibility rules, including limits on shareholders and permitted ownership. Not every business or investor structure qualifies.

Do not add a new shareholder or change ownership without reviewing the election. An entity that no longer qualifies may create tax consequences that extend beyond the transaction itself.

Your next steps

• Review shareholder types and residency.
• Check the capital and ownership structure.
• Discuss planned changes before signing documents.

General education, not individualized tax or legal advice. Illustrations use stated assumptions and do not promise a refund or tax saving.