Once a corporation properly elects to be a Subchapter S corporation,it cannot terminate its election for five years.

Question

Quizplus · Accepted Answer

Although there are certain circumstances that could lead to the termination of a Subchapter S corporation election before the five-year period, such as a revocation by the shareholders or the corporation no longer meeting the eligibility requirements, it is not true that the election cannot be terminated for five years after it is made.

Once a Corporation Properly Elects to Be a Subchapter S