I am a bit confused regarding some text in this class about S corporations. I’m getting ready to take the proctored exam, and I do not want this particular quesiton, as the study guide and Chapter text conflict. Please advise:
From Chapter text:
There are some important restrictions on S corporations, however. They cannot have more than one hundred shareholders, all of whom must be U.S. citizens or resident aliens; can have
From Study Guide:
The S corporation business form is advantageous in that ownership liability is limited to capital contribution. The shareholders can elect to have the business taxed like a partnership. S corporations are at a disadvantage in they can have no more than 75 shareholders. S corporations are also governed by complicated tax law.