Question

Which of the following is a requirement to be an S corporation?

a. be a domestic or foreign corporation.
b. have fewer than 75 shareholders.
c. have only one class of stock.
d. have at least one corporate shareholder.
e. none of the choices are correct.

Answer 1

To be an S corporation, a corporation must be domestic, have a limited number of shareholders, have only one class of stock, and have shareholders that meet certain qualifications.

Step-by-step explanation:

To be an S corporation, there are several requirements that need to be met:

1. The corporation must be a domestic corporation.
2. It must have no more than 100 shareholders.
3. It can only have one class of stock.
4. All shareholders must be individuals, estates, certain trusts, or tax-exempt organizations.

In summary, to be an S corporation, the corporation must be domestic, have a limited number of shareholders, have only one class of stock, and have shareholders that meet certain qualifications.