Which of the following requirements is not required by a corporation to qualify for S corporation status?
A) The corporation must have only 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 must be a domestic corporation.

Question

Quizplus · Accepted Answer

The requirement that a corporation must have no more than twenty-five shareholders to qualify for S corporation status is outdated. The law was changed in 1996 to allow corporations to have up to 100 shareholders. Therefore, the correct answer is C.

Which of the Following Requirements Is Not Required by a Corporation