Asked by Skylar Kawecki on Feb 18, 2024
Verified
In an S corporation,what is the maximum number of shareholders allowed?
A) 12
B) 50
C) 75
D) 100
S Corporation
A type of corporation that is eligible for, and elects, special taxation status.
- Understanding the concept of an S corporation and its characteristics.
- Knowledge of the limitations on the number of shareholders in an S corporation.
- Familiarity with the different options for the maximum number of shareholders in an S corporation.
Verified Answer
BP
Brett PowellFeb 18, 2024
Final Answer :
D
Explanation :
An S corporation is allowed to have up to 100 shareholders. This is part of the requirements set by the IRS for companies electing to be treated as S corporations for tax purposes.
Learning Objectives
- Understanding the concept of an S corporation and its characteristics.
- Knowledge of the limitations on the number of shareholders in an S corporation.
- Familiarity with the different options for the maximum number of shareholders in an S corporation.
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