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(solution) Roger is one of 75 members in Justin's S corporation. He is aware


Roger is one of 75 members in Justin's S corporation. He is aware that current regulations allow up to 100 members. He believes all 75 members must agree on any new members.

  • Is he correct? Why or why not?

Current regulations governing S corporation do not allow foreigners to be shareholders. Given the global markets, Justin feels this regulation should be changed.

  • Is it necessary that the regulation should be changed? Why or why not?
  • Do foreign owners of S corporation weaken or strengthen U.S. corporations?
  • Does simply filing an S corporation tax return make the business an S corporation? Analyze and explain how the election of S corporation is made.
  • Manufacturing firms should not organize as S corporation. Why or why not?

 


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Sep 13, 2020

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