Bobby T (75% owner)would like to terminate the S corporation status for DJ,Inc.but Dallas (5% owner)does not want to terminate the S corporation status.Bobby T can terminate the S status for DJ,Inc.without Dallas's consent.

Question

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According to the rules for S corporations, a majority shareholder (in this case, Bobby T with 75%) can decide to terminate the S corporation status without the consent of minority shareholders (such as Dallas with 5%). Therefore, Bobby T can terminate the S status for DJ, Inc. even if Dallas does not want to.

Bobby T (75% Owner)would Like to Terminate the S Corporation