Can an s corp have Treasury stock?

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1243877

2026-08-16 20:55

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No, an S corporation cannot have treasury stock. Treasury stock refers to shares that were once issued and outstanding but have been repurchased by the corporation, which can complicate the ownership structure and affect compliance with S corporation regulations. S corporations are limited to a specific number of shareholders and must adhere to certain eligibility criteria, making the presence of treasury stock incompatible with their structure.

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