Equity Crowdfunding for S Corporations?

A corporation can have S status, so that profits are passed through and taxed to owners, if there are no more than 100 shareholders. This shareholder limit essentially bars S corporations from raising capital through equity crowdfunding. A new bill (H.R. 4831) would create an exception to this limit for shareholders who obtain their shares through crowdfunding or small public offerings. Chances of enactment? Who knows.


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