### Question
What does small business corporation mean?


### Answer
**Small business corporation** has the following meaning in *26 U.S.C. § 1361*:

> a domestic corporation which is not an ineligible corporation and which does not—


(A) have more than 100 shareholders,


(B) have as a shareholder a person (other than an estate, a trust described in subsection (c)(2), or an organization described in subsection (c)(6)) who is not an individual,


(C) have a nonresident alien as a shareholder, and


(D) have more than 1 class of stock

#### Citation:
  - *26 U.S.C. § 1361*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter S-Tax Treatment of S Corporations and Their Shareholders > PART I-IN GENERAL**

