Highlights
• Qualified shareholder requirement
• Trusts as shareholders
• Estates as shareholders
• Qualified tax exempt shareholders
• Tax planning ideas to accommodate economic investments by disqualified investors
• Special rules for counting the number of shareholders
• One class of stock requirement
• Indirect preferences creating risk of failing one class of stock requirement
• Disqualified corporations
• Making an effective S corporation election
• Relief for late or defective elections
• Inadvertent termination relief for involuntary terminations
Objectives
• Identify and discuss the requirements that must be satisfied to make the S corporation election
• Recognize complications related to having trusts, estates, tax-exempt and ESOP shareholders
• Review and application of the one class of stock requirement to accomplish continued qualification
• Determine tax planning ideas to accommodate economic participation by disqualified investors
