Qualification(s) that must be met to form an S-corporation include:
A) Cannot be more than 100 stockholders
B) Stockholders must be individual persons rather than corporations
C) The election to be taxed as individuals may occur any time during the fiscal year, but prior to filing income taxes each year
D) Domestic corporation
E) Both a and b

Question

Quizplus · Accepted Answer

To qualify as an S-corporation, there are specific criteria that must be met. Among these, the corporation cannot have more than 100 shareholders (A), and all shareholders must be individuals, estates, or certain trusts, not corporations or partnerships (B). This makes option E, which includes both A and B, the correct choice.

Qualification(s) That Must Be Met to Form an S-Corporation Include