Using an online research service, determine whether your state:

a. Allows flow-through treatment for Federal S corporations.

b. Requires any state-specific form to elect or elect out of S treatment at the state level.

c. Places any additional withholding tax burdens on out-of-state U.S. sharehold- ers or on non-U.S. shareholders of an S corporation.

d. Requires any additional information disclosures or compliance deadlines for S corporations operating in the state other than to the revenue department (e.g., a report that must be filed with the secretary of state).

e. Accepts "composite" or "block" income tax returns.