An S corporation can have both voting and nonvoting common stock as long as the shares of stock have identical rights to share in the profits and assets of the corporation.

Question

Quizplus · Accepted Answer

This statement is true. S corporations can have both voting and nonvoting common stock, but the shares must have identical rights to share in the profits and assets of the corporation. This ensures that all shareholders are treated equally and there are no preferential treatment or advantages for certain shareholders.

An S Corporation Can Have Both Voting and Nonvoting Common