Bill > S1371

This bill modifies the Internal Revenue Code to increase the maximum number of shareholders allowed in an S corporation from 100 to 250. S corporations are a type of business structure that allows companies to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes, avoiding double taxation. By raising the shareholder limit, the bill would enable more businesses to qualify for S corporation status, potentially providing greater flexibility for growing companies to raise capital and expand ownership while maintaining the tax benefits of an S corporation. The change would take effect for taxable years beginning after December 31, 2025, giving businesses and tax professionals time to prepare for the new shareholder limit.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1371/all-info