arrow_back Back to App

More Shareholders for S-Corps: New Business Opportunities

This act increases the maximum number of shareholders an S-Corporation can have from 100 to 250. This means more small and medium-sized businesses will be able to benefit from simplified tax rules, potentially making it easier for them to grow and raise capital. The changes will take effect from the 2026 tax year.
Key points
Increases the S-Corp shareholder limit from 100 to 250 individuals.
Facilitates capital raising and growth for small and medium-sized businesses.
Changes become effective for taxable years beginning after December 31, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1371
Sponsor: Sen. Boozman, John [R-AR]
Process start date: 2025-04-09
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
AI work logs for this document launch

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_S_1371.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

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 capital raising and growth for small and medium-sized businesses.
  • Changes become effective for taxable years beginning 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 Sen. Boozman, John [R-AR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Economy