No, you cannot file as a C Corporation. If you are married, you and your spouse are considered one owner and can elect to be treated as an single member LLC. As a single member LLC, you can elect to file as an S-Corporation. To qualify for S corporation status, the corporation must meet the following requirements:
- Be a domestic corporation
- Have only allowable shareholders
- May be individuals, certain trusts, and estates and
- May not be partnerships, corporations or non-resident alien shareholders
- Have no more than 100 shareholders
- Have only one class of stock
- Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).
There are also payroll requirements for officers/owners of an S-Corporation.
S-Corporation
Otherwise, you would file as a Schedule C and will calculate self-employment tax on the net profits of the business.
