Which of the following requirements must be met by a corporation to qualify for S corporation status?
A) The corporation must have more than one class of stock.
B) The corporation must file a timely election signed by all the shareholders to be treated as an S corporation.
C) The corporation must have no more than twenty-five shareholders.
D) The corporation can be a domestic or foreign corporation.

Question

Quizplus · Accepted Answer

S corporations must file an election with the IRS, signed by all shareholders, to be treated as such. They cannot have more than one class of stock, must have 100 or fewer shareholders (not 25), and must be domestic corporations.

Which of the Following Requirements Must Be Met by a Corporation