Which of the following, if any, can be eligible shareholders of an S corporation?
A) A Roth IRA.
B) A partnership.
C) A non-U.S. corporation.
D) A nonqualifying trust.
E) None of these.

Question

Quizplus · Accepted Answer

S corporations have strict rules regarding their shareholders. Eligible shareholders are generally limited to individuals, certain trusts, and estates. Roth IRAs, partnerships, non-U.S. corporations, and nonqualifying trusts are not eligible to be shareholders in an S corporation, making none of the provided options correct.

Which of the Following, If Any, Can Be Eligible Shareholders