1. There are a few reasons that investors in Project Repeat might shy away from the idea of becoming an S corporation. While Project Repeat might be able to avoid double taxation that regular corporations face, they would also be facing a lot of restrictions. One problem with S corporations is that they can only have 100 stockholders. In addition, the limited number of stockholders, there are also restrictions on who can own stock in the company. Another drawback to this type of corporation is that all of the outstanding stock has to be the same class. In light of all of these restriction it might be difficult to get all of the stockholders to agree on becoming an S corporation.
2. If Project Repeat had been a partnership, rather than a corporation
2. If Project Repeat had been a partnership, rather than a corporation