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More Shareholders for S-Corps: New Business Opportunities

This act increases the maximum number of shareholders an S-Corp can have from 100 to 250. This means more small and medium-sized businesses can benefit from simplified tax rules, potentially making it easier for them to grow and raise capital. The changes will take effect for tax years beginning after December 31, 2025.
Key points
Increases the S-Corp shareholder limit from 100 to 250 individuals.
Facilitates easier investment and ownership structuring for small and medium businesses.
Changes become effective for tax years starting after December 31, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_2777
Sponsor: Rep. Hill, J. French [R-AR-2]
Process start date: 2025-04-09
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

S-CAP Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_2777.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-04-09.

What are the main provisions?

Key points include:

  • Increases the S-Corp shareholder limit from 100 to 250 individuals.
  • Facilitates easier investment and ownership structuring for small and medium businesses.
  • Changes become effective for tax years starting after December 31, 2025.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Hill, J. French [R-AR-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Economy