For purposes of the 100-shareholder limit in an S corporation, a husband and wife (and their estates) are treated as one shareholder, regardless of whether the stock is held jointly or separately. This rule also applies to all members of a family under certain conditions. This treatment helps prevent family-owned businesses from being disqualified due to exceeding the shareholder limit.
Added by Thomas S.
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Step 1: Understand the 100-shareholder limit for S corporations, which states that an S corporation can have no more than 100 shareholders. Show more…
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