Small Business Corporations

**sioban** · 29-Aug-22, 10:11 AM

We’ve been informed that we are not considered an SBC because we only have two employees other than my husband and myself. Is it a requirement to have three employees to be classified an SBC? Is there any literature on this?

**Andromeda** · 29-Aug-22, 01:14 PM

There is, see especially page 12
LAPD-IntR-IN-2018-06-Arc-06-IN35-Issue-3-Employees-Tax-Personal-Service-Providers-Labour-Brokers.pdf

**Flora Jenkins** · 10-Apr-23, 08:55 AM

No, it is not a requirement to have three employees in order to be classified as an SBC. According to the U.S. Small Business Administration website, a small business corporation is defined as a legal entity created by one or more persons, including individuals, partnerships, associations, and corporations, who collectively have fewer than 100 owners. Therefore, you may qualify as an SBC if you meet the other criteria outlined by the Small Business Administration. Additionally, you can find further information regarding small business corporations and their qualifications on the SBA website.

**Dave A** · 11-Apr-23, 07:05 AM

Originally Posted by Flora Jenkins

No, it is not a requirement to have three employees in order to be classified as an SBC. According to the U.S. Small Business Administration website, a small business corporation is defined as a legal entity created by one or more persons, including individuals, partnerships, associations, and corporations, who collectively have fewer than 100 owners. Therefore, you may qualify as an SBC if you meet the other criteria outlined by the Small Business Administration. Additionally, you can find further information regarding small business corporations and their qualifications on the SBA website.

You are incorrectly applying a USA tax regime to a South African business.