All of the following are requirements to qualify as an S corporation with the exception of
A)the corporation must be a domestic corporation.
B)the corporation may issue only one class of stock (disregarding voting rights).
C)the corporation may not have more than 100 shareholders.
D)the corporation shareholders may consist of only individuals,estates,trusts,and partnerships.

Question

Quizplus · Accepted Answer

The requirement that shareholders of an S corporation may only consist of individuals, estates, trusts, and partnerships was eliminated in 1996. Currently, certain types of trusts, such as grantor trusts and qualified subchapter S trusts, as well as certain types of entities, such as single-member LLCs and qualified subchapter S subsidiaries, can also be eligible shareholders in an S corporation. Therefore, D is no longer a requirement to qualify as an S corporation.

All of the Following Are Requirements to Qualify as an S