and which is a threshold requirement for being able to make the election to be taxed as an S corporation?$$ Mainly this refers to the number and type of shareholders, but those aren't the only requirements.$$ Your first discussion question is to describe a problem that could come up$,$ or a borderline situation where there could be unanticipated negative tax consequences, and then detail what the corporation and its shareholders should do to avoid the problem or negative tax consequences.