The very large Lido Family has recently won the lottery and their friends have encouraged them to open a restaurant chain to serve their classic family style Italian meals that the neighborhood has enjoyed for many years. The Lido’s are set on organizing their restaurants as an S corporation. Gina and Vito Lido are a married couple and are lawful permanent US residents, Maria Lito is an Italian citizen, Salvatore and Enzo Lido are married and US citizens. (a) Who can be a part of the S corporation and why, or why not, every family member can be an owner in the corporation. (b) The Lidos are also interested in selling second-class shares to their neighbors, while retaining their first-class stock. Will this be possible for an S corporation?
The very large Lido Family has recently won the lottery and their friends have encouraged them to open a restaurant chain to serve their classic family style Italian meals that the neighborhood has enjoyed for many years. The Lido’s are set on organizing their restaurants as an S corporation. Gina and Vito Lido are a married couple and are lawful permanent US residents, Maria Lito is an Italian citizen, Salvatore and Enzo Lido are married and US citizens.
(a) Who can be a part of the S corporation and why, or why not, every family member can be an owner in the corporation.
(b) The Lidos are also interested in selling second-class shares to their neighbors, while retaining their first-class stock. Will this be possible for an S corporation?
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