15-31-201. Definition of "small business corporation". (1) Except as provided in subsection (2), the term "small business corporation" means a corporation that has made a valid election under subchapter S. of Chapter 1 of the Internal Revenue Code. A small business corporation shall attach a copy of the approved federal election with the Montana return filed for the first taxable year the federal election is effective.
     (2) A corporation that would otherwise be a small business corporation may continue to be subject to the taxes imposed by Title 15, chapter 31, if all of the following conditions are met:
     (a) on December 31, 1991, the corporation was doing business in Montana and had a valid subchapter S. corporation election but had not elected to be taxed as a Montana small business corporation;
     (b) after December 31, 1991, the corporation has not filed as a Montana small business corporation; and
     (c) the corporation files a corporate license tax return, as required by 15-31-111, reporting all income or loss as determined under Title 15, chapter 31, and attaches a copy of the federal subchapter S. corporate tax return.

     History: En. 84-1501.1 by Sec. 1, Ch. 122, L. 1959; amd. Sec. 1, Ch. 405, L. 1977; R.C.M. 1947, 84-1501.1(a), (b); amd. Sec. 1, Ch. 667, L. 1983; amd. Sec. 1, Ch. 534, L. 1989; amd. Sec. 6, Ch. 807, L. 1991.