In the event that the Directors fail to make the Subchapter “S” election for the business within the prescribed seventy-five (75) day window, the business will remain a “C” Corporation for tax purposes for the balance of the calendar year (the prescribed fiscal year for “S” Corporations). At the start of the following, calendar year, however, the business may make the Subchapter “S” election thereby converting the “C” Corporation to an “S” Corporation.
