On March 2, the two 50% shareholders of a calendar year corporation decide to elect S status.

Question:

On March 2, the two 50% shareholders of a calendar year decide to elect S status. One of the shareholders, Terry, purchased her stock from a previous shareholder (a nonresident alien) on January 18 of the same year.
Identify any potential problems for Terry or the Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...