Which of the following is NOT one of the standards that a business must meet to qualify for status as a subchapter S corporation?
A) The business must be a subsidiary of another corporation.
B) All shareholders must agree to have the corporation formed as a subchapter S corporation.
C) It can have no more than 100 members (husbands and wives count as one member).
D) It can have only one class of stock issued and outstanding.
E) The shareholders must be U.S. citizens.

Question

Quizplus · Accepted Answer

The business being a subsidiary of another corporation is not a requirement for subchapter S status. The other options are all requirements, including shareholder agreement, limited number of members, one class of stock, and U.S. citizenship of shareholders.

Which of the Following Is NOT One of the Standards