S Corporation

Question 1

Requirements of S Corps

Answer 1

1. 100 or less s/h
2. Individuals NOT Corps/Ptn/LLC/Corp trust
3. Citizen or US Resident
4. Domestic NOT Foreign
5. One (1) class of stock (voting and nonvoting)

Question 2

Partnership can be a shareholder of an S Corp. T or F

Answer 2

False

A Partnership (also C Corps) cannot be a shareholder (own stock) of an S Corp.

Question 3

An S Corp can be a Partner in a Partnership. T or F

Answer 3

True

An S Corp can be a Partner in a Partnership. Also, can own any % of stock in a C Corp.