Which of the following numbers of shareholders is allowed in a subchapter S (or S)corporation business form?
A)100
B)125
C)130
D)500

Question

Quizplus · Accepted Answer

A subchapter S corporation can have a maximum of 100 shareholders. This is to ensure that the corporation remains small and closely held. If the corporation has more than 100 shareholders, it will lose its S corporation status and be taxed as a regular C corporation. Therefore, the best choice is A)100.

Which of the Following Numbers of Shareholders Is Allowed in a Subchapter