These criteria are for what type of business corporate ownership?
1. Must be a domestic (U.S.) corporation.
2. It cannot have a nonresident alien as a shareholder.
3. It can issue only one class of common stock, which means that all shares must carry the same rights(e.g. the right to dividends or liquidation rights). The exception is voting rights, which may differ. In other words, a ____ corporation can issue voting and nonvoting common stock.
4. It must limit its shareholders to individuals, estates, and certain trusts, although tax-exempt creations such as employee stock ownership plans (ESOP's) and pension plans can be shareholders.
5. It cannot have more than 100 shareholders, which is an important benefit for family businesses making the transition from one generation of owners to another. Members of one family are treated as a single shareholder.
6. Less than 25 percent of the corporation's gross revenues during three successive tax years must be from passive sources.
The S Corporation.