SESK: Stuff Everyone Should Know · sesk.info/biz-s-corp-eligible-shareholders
Which of these can NOT be an S corporation shareholder?
A partnership can't. Individuals, certain trusts and estates can.
- A US citizen
- An estate
- A partnership ✔
Why: S corporation shareholders may be individuals, certain trusts and estates. Partnerships, corporations and nonresident aliens are not allowed.
Huh, didn't know that: Domestic international sales corporations are also ineligible to be S corporations.
The S corp turned away the partnership at the door. Dress code: individuals only.
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References
Answer: A partnership. S corporation shareholders may be individuals, certain trusts and estates. Partnerships, corporations and nonresident aliens are not allowed.
- IRS: S corporations www.irs.gov/businesses/small-businesses-self-employed/s-corporations
May not be partnerships, corporations or non-resident alien shareholders
Checked 2026-10-11.
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