Mojo Motors is a small conventional corporation with only 212 stockholders. Eleven of the stockholders are citizens of Mexico, and eight others are citizens of Canada. Due to its size and diversity in ownership, you would recommend that Mojo Motors change to an S-Corporation.

Question

Quizplus · Accepted Answer

The citizenship of the stockholders is not a determining factor in whether a corporation should become an S-Corporation. The decision to become an S-Corporation should be based on factors such as the number of shareholders, the type of income generated by the corporation, and the desired tax treatment.

Mojo Motors Is a Small Conventional Corporation with Only 212