A corporation can elect to be taxed as a Subchapter S corporation if it meets certain requirements including that it has 100 or fewer shareholders,all of whom are individuals,estates,and certain trusts.

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This statement is true. In order to qualify for Subchapter S status, a corporation must meet several requirements, including the 100 or fewer shareholder rule. Additionally, those shareholders must be individuals, estates, or certain trusts- not other corporations or partnerships.

A Corporation Can Elect to Be Taxed as a Subchapter