How many shareholders can an S corporation have?

An S corporation can have no more than 100 shareholders, according to the IRS. Its shareholders must also be allowable owners: generally individuals, certain trusts, and estates, not partnerships, corporations, or nonresident aliens.

An S corporation may have only one class of stock and must be a domestic corporation. To elect S status, the corporation files Form 2553, signed by all of its shareholders.

Source: Internal Revenue Service — S corporations.

Image: Annual shareholders meeting; Krassotkin, CC0, via Wikimedia Commons.

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