can a close corporation be an s-corp
The maximum number of shareholders is different for S corporations and close corporations. Under the Internal Revenue Code, an S-corporation may have a maximum of 100 shareholders.The maximum number of shareholders permitted for a close corporation varies according to state law.ll of the shareholders report the profits and losses of the business on their individual tax returns. Shareholders of a close corporation do not enjoy the ability to avoid corporate taxation, and may be subject to double-taxation of earnings on corporate and personal tax returns. Related Reading: S Corp Vs.