You are a rare breed of idiot with a rare penchant for overstatement.
I sure taught you guys about business entity's.
So, explain this to me. How can you be a sole owner of your franchise and own all of the stock at the same time? Doing so would be counterproductive being the sole investor. So I call bullshit on that part.
I don't care about that. I can be the only share holder as the owner, though.
No you can't. You don't need to be a shareholder, nor are you a shareholder.
You know what this sounds like to me? It sounds like you're one of those guys who has opened a regional franchise and goes house to house selling crap products, all while you sit on your hind parts doing little to nothing.
What you describe is a sole proprietorship, but you then are claiming to be an S-Corporation. You cannot jump from being a sole proprietor to the owner of an S-Corp. You need to file as a C type corporation first, then have ALL of your shareholders file a form 2553 to elect it as an S type.
Geez, looks like I just educated you on corporate tax law. By definition, a shareholder and owner are two different things entirely.
As I pointed out to you the owner and wife are considered to be 1 shareholder. You were saying?
Your marital status means jacksquat. You don't know anything about what it takes to be an S-Corp or what it takes to be a shareholder. You cannot be a shareholder and owner of an S-Corp, not even if you are a polygamist.
Here it is and in bold,
S corporations and LLCs possess similarities: They offer their owners limited liability protection and are both pass-through tax entities. Pass-through taxation allows the income or loss generated by the business to be reflected on the personal income tax return of the owners. This special tax status eliminates any possibility of double taxation for S corporations and LLCs.
A corporation must meet certain conditions to be eligible for a subchapter S election. First, the corporation must have no more than 75 shareholders. In calculating the 75-shareholder limit, a husband and wife count as one shareholder. Also, only the following entities may be shareholders: individuals, estates, certain trusts, certain partnerships, tax-exempt charitable organizations, and other S corporations (but only if the other S corporation is the sole shareholder).
In addition, owners of S corporations who don't have inventory can use the cash method of accounting, which is simpler than the accrual method. Under this method, income is taxable when received and expenses are deductible when paid.
You keep making my point. You (or your spouse) cannot be the sole investor(s) in an S type corporation. Unless you filed for C type first, you cannot be the sole investor electing your corporation for S type. Geez, what will it take for me to get this through your thick head?
By the way, you need to link to your sources.