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How does the income get taxed if an S corporation has nonresident shareholders?

April 26, 2017corporation income nonresident Shareholders TAXED

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How does the income get taxed if an S corporation has nonresident shareholders?

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Since S corporation income is pass-through income, shareholders who have income from an S corporation with Minnesota source income would be required to file an individual Minnesota income tax return (Form M1), unless they elect to have the S corporation pay composite income tax on their behalf.