TooEarly, Inc. is a calendar year corporation. On January 3rd of the current year at the request of TooEarly management, Grand Slam Inc., TooEarly's only corporate shareholder, sells all its shares of TooEarly stock to Bill Brady, an individual. On January 5th of the current year TooEarly files for S corporation status. What is the first year TooEarly will be eligible for S corporation treatment

Next year

Explanation:

Since in the question, it is given that the only the corporate shareholder sells all of its shares to Bill Brady who is an individual and on the current year too early filed the S corporation status

Now the TooEarly will be eligible for the next year as the TooEarly has a non-qualified shareholder but the S corporation treatment is available for the following year

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