Can an S Corp have only one member?
In this audio snippet, you'll hear about:
- For sure – Most small businesses have only a single member
- Some states have traditionally required 3–5 members, but that has changed for most states
Audio Transcript
Travis:
Can an S corp have only one member, the same what than an LLC can?
Yosef:
Absolutely. Most of those businesses actually will only have a single shareholder.
Travis:
Great.
Yosef:
Where it does get interesting is, that in community property states,
that single shareholder, if it's a husband or wife, may actually be two
shareholders. And that's important for people to realize...
Travis:
That is an important distinction.
Yosef:
Yeah. I think it's really important for people to consider.
Travis:
So that single shareholder serves as all of the officers of the S corp, is that correct?
Yosef:
Well, that's a really good question. States are changing their policies
on that. Some states, traditionally, have required as many as three to
five directors of a corporation. And now that's changed down to one for
a number of states. I can't speak for all the states.
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