How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 54718
Experience:  32 years of experience practicing law and a businessman.
17027240
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

For an S Corp is there a maximum annual sales revenue or an

Resolved Question:

For an S Corp is there a maximum annual sales revenue or an annual profit that can not be exceeded in order to maintain an S Corp status - (i.e. over 4 million you need to convert to a C Corp) and is there a point when you have to change your account method once you've exceeded a maximum profit or sales.
Submitted: 6 years ago.
Category: Business Law
Expert:  Richard replied 6 years ago.

Good afternoon. No, there is no revenue limitation on a SCorporation to retain its status as an S Corporation. Once you file your initial election, the only thing you need to monitor is to make sure no shares end up being owned by someone disqualified to be an owner of an S Corporation.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard and 6 other Business Law Specialists are ready to help you
Customer: replied 6 years ago.
Thank you for you answer - I just need to get clarification if there is any restrictions on the account methods of an S Corp (if you make a certain amount do you have to change to a different accounting system)
Expert:  Richard replied 6 years ago.

My pleasure! I'm so sorry...I forgot to address that...no, you need not change accounting systems. You are good to go make as much money as you want without worrying!

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.