Tone Loc and 89 of his biggest fans formed an S corporation, 2hit, Inc., as the original ninety shareholders. Tone then transferred some of his stock to his grandfather, four of Tone's cousins, five of Tone's children, three of Tone's grandchildren, and 2 close friends. For the S corporation shareholder limit rules, how many shareholders does 2hit, Inc. have?

Question

Quizplus · Accepted Answer

Family members include a common ancestor and his lineal descendants and their spouses. Therefore, Tone Loc, 89 fans, and his two close friends will be deemed to be the total number of shareholders for 2hit, Inc.

Tone Loc and 89 of His Biggest Fans Formed an S