S corp eligibility checklist — EA Part 2 Widgets

What this does

How to read it Visual: score meter fills as you clear (or fail) checklist items.

Check S corp eligibility: who can be a shareholder, one class of stock, and termination themes. Green = looks eligible; red flags mean trouble on the exam.

Visual: score meter fills as you clear (or fail) checklist items.

Eligibility checklist

Domestic corporation
≤ 100 shareholders (family aggregation rules awareness)
Only eligible shareholders (individuals / certain trusts/estates; no partnerships/corps as owners)
No nonresident alien shareholders
Only one class of stock (voting differences OK; distribution/liquidation rights identical)
Has a second class with preferred distribution rights
Partnership is a shareholder
Mid-year ineligible shareholder admitted (termination risk)

Status

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Flags

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Eligibility health—

Checklist · clear vs flagged

Exam trap: Disproportionate distributions can create a second class of stock. Voting vs nonvoting is OK if distribution/liquidation rights are identical. Ineligible shareholder can terminate S status.

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Study tool only — not official IRS software. Figures labeled 2025 track law/forms through Dec 31, 2025. Confirm against current IRS pubs before the exam.