In a recent case see Mowry v. S corporations, when compared to other pass-through entities, are relatively user friendly.
If only it were so straightforward for an oppressed shareholder, especially in a pass-through entity such as an S corporation. As a minority owner, they have little to no say in the management or operation of the business, or in the distribution of the profits therefrom.
Because of these benefits, shareholders are naturally concerned that the corporation maintain this status year-to-year. Finding out that an S election has been inadvertently terminated because one of the many S corporation qualification rules has been violated can cause serious problems, especially when the business is about to be sold.
Distributions This section discusses corporate distributions to shareholders. These distributions may be ordinary dividends, stock dividends, or a return of capital.
Variations of the following question commonly make their way into Double Taxation HQ, by which I mean my email:. My client is an S corporation owned equally by A and B.
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