An S-corp election is a federal tax election through which an eligible entity requests taxation under Subchapter S of the Internal Revenue Code. It generally changes how qualifying business income and other tax items are reported.

An S corporation should be explained as a federal tax classification rather than simply another state entity type. A qualifying corporation or LLC can seek S corporation tax treatment by making the required federal election. The entity must satisfy eligibility rules, and the underlying state-law entity continues to exist as the corporation or LLC that was formed with the state.

Corporations commonly use Articles or a Certificate of Incorporation, bylaws, initial organizational actions, officer and director records, and stock or shareholder records. The state filing establishes the entity, while these internal records help document how the corporation is governed and who has authority to act for it.