To qualify as an S corporation,a company must:
A)Have no more than 50 shareholders.
B)Have shareholders who are individuals or estates,and,qualify as permanent residents of the U.S.
C)Have a different class of stock for each owner.
D)Have not more than 5 percent of income derived from passive sources.

Question

Quizplus · Accepted Answer

To qualify as an S corporation, a company must have shareholders who are individuals, estates, or certain trusts, and they must be U.S. citizens or residents. The other options do not accurately reflect the requirements for S corporation status.

To Qualify as an S Corporation,a Company Must