Stock Option & S corp.

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  • jmc
    Senior Member
    • Jun 2005
    • 106

    #1

    Stock Option & S corp.

    When considering entity choice, does S corp. have any restrictions or disadvantages on Incentive Stock Option, compared to C Corp?
  • OldJack
    Banned
    • Dec 2005
    • 1689

    #2
    If the Incentive Stock Option plan was considered as a second class of stock (such as strike price is substantially below the stock's FMV) it could terminate the S-corp status.

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