Final answer:
None of the given options are eligible to be shareholders in an S corporation due to strict IRS criteria. Only certain individuals, trusts, and estates can own stock in an S corporation, reflecting the limited liability and ownership benefits of corporate shareholders.
Step-by-step explanation:
which entities can be eligible shareholders of an S corporation is e. None of these choices can own stock. S corporations have strict eligibility criteria for shareholders, which typically exclude entities such as partnerships, IRAs, trusts that do not meet certain qualifications, and non-U.S. corporations.
Shareholders in S corporations are limited to certain types of individuals and entities. Generally, eligible shareholders are limited to individuals, certain trusts, and estates. The Internal Revenue Service (IRS) has specific requirements that must be met for a corporation to qualify for S corporation status.
Common characteristics of corporations include their ability to issue stock which represents ownership in the company. Shareholders have limited liability for the debts of the corporation and can benefit from the profits and grow their investments without shouldering the company's liabilities.