BusLaw 205

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:

BusLaw 205

S corporations

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.

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The book is correct – the 75 number from the study guide reflects the law prior to ~2004. We’ll correct the guide and any affected exam questions.

Thank you!

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