REQUIREMENTS OF S STATUS |
An S corporation must Be a domestic and eligible corporation Have only one class of stock Have no more than 100 shareholders Have only allowed shareholders (individuals, estates, or qualified trusts) |
A Non – Resident alien (NRA) may not own shares of S Corp [Must be a citizen / resident of US] |
Family Members in a six generation range are considered as one shareholder |
Partnerships, Charitable Remainder Unitrusts and Charitable Remainder Annuity Trusts may not be shareholders of S Corp |
Domestic International Sales Corporations (DISC) cannot elect S Status |
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