Robert is seeking additional capital to expand ABC Inc.In order to qualify ABC as an S corporation, which type of investor group could Robert obtain capital from?
A)30 different partnerships.
B)10 different C corporations.
C)90 nonresident individuals.
D)120 unrelated resident individuals.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

To qualify as an S corporation, the IRS has specific requirements including that the corporation can have no more than 100 shareholders, and all shareholders must be U.S. citizens or residents. Partnerships, C corporations, and nonresident individuals do not qualify as shareholders in an S corporation.

Robert Is Seeking Additional Capital to Expand ABC Inc