Question

"Allison is going to create a lawn service business. Allison would like to limit her liability by creating a subchapter "S" corporation. She does not know if the state she lives in allows for a single shareholder corporation. Where should Allison look to find the answer to her question

Answer 1

Answer:

Since all businesses, except sole proprietorships, must obtain a state charter to start operating, the best place to look for is the state's statutes which regulate them.

A state statute is basically a state law that regulates or prohibits certain activities, and it must be passed by state legislatures. State legislatures generally have all their statutes organized and available for the public, e.g. by accessing the state legislature's website you can generally access all the statutes passed by them and search for the ones that apply to S corporations.