New S Corp election definition

Actually, all corporations must begin existence as a C corporation, which is the basic corporate entity. Once the corporate documents are filed with the state you've chosen to incorporate in, you can then file what is called the Sub-chapter S election, which converts your C corporation to an S corporation.

Be sure to pay attention to the very specific and strict timing requirements of this election. Check with your attorney and tax advisor about the timing of your Sub-chapter S election.