Eligibility
An S-Corporation can have no more than this many shareholders....
What is 100?
This S-Corp advantage protects owners from most business debts....
What is limited liability?
An S-Corp generally protects these belongings from business lawsuits....
What are the owner’s personal assets?
These people are the owners of an S-Corporation....
Who are shareholders?
S-Corp founders can use their own money, also called this, to fund the business....
What is personal capital?
S-Corp shareholders generally must be citizens or permanent residents of this country....
What is the United States?
This advantage means S-Corp profits and losses pass through to shareholders....
What is no double taxation?
S-Corporations avoid this tax disadvantage that can occur with C-Corporations....
What is double taxation?
Compared to these two business types, an S corporation requires more paperwork....
What are a sole proprietorship and a partnership?
An S-Corp can raise money by selling this to investors....
What is common stock?
These two types of companies cannot qualify as S-Corporations....
What are banks and insurance companies?
S-Corps have more of these requirements, including annual meetings and a board of directors....
What are formal procedures?
S-Corp shareholders report their share of company profits on these....
What are their personal tax returns?
Complete the hierarchy: Shareholders → Board of Directors → Officers → _____....
Who are employees?
Besides personal capital and selling stock, S-Corps can raise money through this traditional method....
What is debt financing?
All shareholders must do this for the business to become an S-Corporation....
What is agree to become an S-Corporation?
S-Corps can only issue this type of stock, which can make raising money more difficult....
What is common stock?
A shareholder could become personally liable by doing this with company assets....
What is using company assets for personal purposes?
There must be state/local licenses, permits, and these....
What are tax registrations?
S-Corps can sell common stock only to this restricted type of group....
What is a restricted group of individual investors?
Besides individuals, these three types of shareholders may qualify to own shares in an S-Corp....
What are estates, certain nonprofits, and certain trusts?
Unlike an LLC, an S-Corp must divide profits according to this....
What is ownership percentage?
Unlike an S-Corp, this type of corporation can have profits taxed at the corporate level and dividends taxed again when paid to shareholders.....
What is a C-Corporation?
Th specific IRS form required to elect S corporation tax status....
What is IRS Form 2553?
Name all three main fundraising methods listed for S-Corporations....
What are personal capital from founders, selling common stock to a restricted group of individual investors, and traditional debt financing?