Question

Question 19 1 pts Type of corporation with no more than 100 shareholders, all of whom must be US citizens or permanent residents. Question 20 1 pts What is the organizing document for a corporation called?

Answer 1

1) According to the rule, S Corporation must not have more than 100 shareholders and must have only one class of stock. Shareholders must be U.S. citizens or residents, and must be natural persons, so corporate shareholders and partnerships are generally excluded. However, certain trusts, estates, and tax-exempt corporations, are permitted to be shareholders. Profits and losses must be allocated to shareholders proportionately to each one’s interest in the business. Spouses are automatically treated as a single shareholder.

2) Articles of incorporation is the answer because

Articles of incorporation are a set of formal documents filed with a government body to legally document the creation of a corporation. Articles of incorporation generally contain pertinent information, such as the firm’s name, street address, agent for service of process, and the amount and type of stock to be issued.

Articles of incorporation are also referred to as the "corporate charter," "articles of association," or "certificate of incorporation."