2005 Tax Law Changes - Electing S Corporation Status
From TaxAlmanac, A Free Online Resource for Tax Professionals
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From TaxAlmanac
Summary
For tax years beginning after December 31, 2004, the number of shareholders that an S corporation may have increases from 75 to 100.
For purposes of the 100 shareholder limit, members of a family may elect to be treated as one shareholder. The election may be made by any family member. A family is defined as the common ancestor, the lineal descendants of the common ancestor, and the spouses (or former spouses) of the lineal descendants or the common ancestor.
