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Only the following entities may be shareholders: individuals, estates, certain trusts, certain partnerships, tax-exempt charitable organizations, and other S corporations (but only if the other S corporation is the sole shareholder).
So an LLC could potentially be a memeber
The LLC in question is a partnership and not a charitiable 501c entity.
The IRS has permitted a single-member LLC to be an S corporation shareholder. The logic is that the single-member LLC is disregarded for federal tax purposes. Reg. §(NNN) NNN-NNNN2(a). The tax information of the LLC is reported on the sole owner's personal income tax return, just as was the case when the individual personally owned the stock. In the ruling, an individual transferred his S corporation stock as well as other property to a single-member LLC, where the shareholder was the sole owner of the LLC.Let me check a little further please on the partnership. What type of partnership?
No unfortunately this IRS page states that specifically
To qualify for S corporation status, the corporation must meet the following requirements:
An LLC could potentially be a shareholder, if the LLC is a partnership then no.
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