"Is taxpayer only shareholder in  S Corp?  - Y - It's H & W only"

Are you in a community state? - Y

Because you just named Two Shareholders. - See below - but note that he or she is actually NOT a shareholder, if does not materially participate in business.  

Spousal Designation on Your Form 2553 S Corp Election

If you decide to have your business taxed as an S Corp, you must file a Form 2553 with the Internal Revenue Service (IRS). The tax code states that anyone with a community interest in the stock must consent to the tax election, and Form 2553 will ask for a list of all the business owners. If your spouse can claim community property interest, it seems logical that he or she should be listed on this form, right? But if they are not technically an owner, they shouldn’t be listed as an owner, right? So how do you comply with these conflicting ideas?

The answer isn’t obvious, but the correct way to do it is to list your spouse in the shareholder section of the form, but note that he or

Spousal Designation on Your Form 2553 S Corp Election
If you decide to have your business taxed as an S Corp, you must file a Form 2553 with the Internal Revenue Service (IRS). The tax code states that anyone with a community interest in the stock must consent to the tax election, and Form 2553 will ask for a list of all the business owners. If your spouse can claim community property interest, it seems logical that he or she should be listed on this form, right? But if they are not technically an owner, they shouldn’t be listed as an owner, right? So how do you comply with these conflicting ideas?

The answer isn’t obvious, but the correct way to do it is to list your spouse in the shareholder section of the form, but note that he or she is actually NOT a shareholder. Yes, that’s right – as you list all the owners and their information, include your spouse in this list and get his or her signature. The difference will be that unlike the actual owners, you will not list any ownership percentages or shares or any dates those shares were acquired next to your spouse’s name. Instead, you will note that he or she is a “consenting spouse,” and that he or she owns 0% shares of the business. Although a little convoluted, this solution satisfies both requirements of their affirmative consent without claiming any ownership where there is none.

Yes, that’s right – as you list all the owners and their information, include your spouse in this list and get his or her signature. The difference will be that unlike the actual owners, you will not list any ownership percentages or shares or any dates those shares were acquired next to your spouse’s name. Instead, you will note that he or she is a “consenting spouse,” and that he or she owns 0% shares of the business. Although a little convoluted, this solution satisfies both requirements of their affirmative consent without claiming any ownership where there is none.

Remember; if they Both Work for the S Corp, they are Each Employees.

You must pay more attention to these details.