Why can’t large, publicly traded corporations be treated as S corporations?

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Because they are large, and they are publicly traded.  


The requirements for S-corporations are:

S-corporations may not have more than 100 shareholders. 

S-Corps can't go public: Since S-Corporations are limited to 100 shareholders, it is not possible to use an S-Corp to make an initial public offering.  

And no corporations or partnerships can be shareholders to S-corporations (certain Tax-exempt organizations can). 

Currently, I am an MBA student at EIU. This blog will follow my studies in Corporate taxation

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