S corporations have more restrictive ownership requirements than other entities.

Name: S corporations have more restrictive ownership requirements than other entities.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

S corporations cannot have more than 100 shareholders and those shareholders must be U.S. citizens or residents. They also cannot have more than one class of stock. These ownership requirements are more restrictive than other entities such as C corporations or limited liability companies.

S Corporations Have More Restrictive Ownership Requirements Than Other Entities