Question

How many classes of stock are allowed for a corporation that wishes to make the S corporation election?

1

2

3

4

Answer 1

1) 1, is correct option.

S corporation are pool of corporations which are are granted with some additional facalities/benefits.

These types of corporations must fulfill certain creteria to be part of this pool,one of them is type of shareholders,

This type of corporations may have 1 class of shareholder,In which only individual and certain trust or estate can be shareholders.

They can have single class of shareholders.

Please comment for any additional explanation.

Thanks