BOBBY T 95 OWNER WOULD LIKE TO ELECT S CORPORATION STATUS FO

BOBBY T (95% OWNER) WOULD LIKE TO ELECT S CORPORATION STATUS FOR DJ, INC. BUT DALLAS (5 % OWNER) DOES NOT WANT TO ELECT S CORPORATION STATUS.

BOBBY T CANNOT ELECT (S STATUS) FOR DJ, INC. WITHOUT DALLAS CONSENT.

MULTIPLE CHOICE

1. True

2. False

1.True.

Reason: Bobby T cannot elect S Status for DJ,Inc. without Dallas concent,

(1) According to U.S Code,

Title 26- Internal Revenue Code,

Sub title A ,

Chapter 1- Normal Taxes and sur taxes,

sub chapter S- Tax treatment of S Corporations and their Shareholders,

Part 1- In General,

§1362 Election, (a) (2) All shareholders must consent to elections.

(2) And in Instructions for filling form 2553 (*) Column k of this form requires the consent of all shareholders or in a seperate consent statment.

(*) which is a form for an entity eligible to elect to be treated as a corporation

So, Bobby T cannot elect S Status for DJ, INC without the consent of Dallas who is a 5% owner in DJ, INC

simply reference to US Code---- \"26 U.S. Code § 1362 - Election; revocation; termination\"