Asked by drishika gulati on May 01, 2024
Verified
There are four characteristics that a C Corporation must meet in order to elect Subchapter S status.List the characteristics.
C Corporation
A type of business entity that is taxed separately from its owners, and can have an unlimited number of shareholders.
Subchapter S Status
A tax designation for small corporations that meet specific IRS requirements, allowing income to be taxed at the shareholder level rather than at the corporate level.
- Describe the eligibility criteria for a corporation to elect Subchapter S status.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
To elect Subchapter S status a corporation must:
Be a domestic corporation.
Have 100 or fewer shareholders who are all individuals,estates,and certain trusts.
Have only one class of stock.
Have shareholders who are U.S.citizens or resident aliens.
Be a domestic corporation.
Have 100 or fewer shareholders who are all individuals,estates,and certain trusts.
Have only one class of stock.
Have shareholders who are U.S.citizens or resident aliens.
Learning Objectives
- Describe the eligibility criteria for a corporation to elect Subchapter S status.