Which of the following is not one of the standards that a business must meet to qualify for status as a subchapter S corporation?
A) The business must be a subsidiary of another corporation.
B) All shareholders must agree to have the corporation formed as a subchapter S corporation.
C) It can have no more than 100 members (husbands and wives count as one member).
D) It can have only one class of stock issued and outstanding.
E) The shareholders must be U.S. citizens.

Question

Quizplus · Accepted Answer

The requirement for the business to be a subsidiary of another corporation is not one of the standards that a business must meet to qualify for status as a subchapter S corporation. The other options listed (B, C, D, and E) are all actual requirements for subchapter S corporation status.

Which of the Following Is Not One of the Standards