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 United States.
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

S corporations must have shareholders who are individuals or estates and who qualify as permanent residents of the United States. The other options listed do not accurately describe the requirements for S corporation status.

To Qualify as an S Corporation, a Company Must