26 U.S. Code § 775 - Electing large partnership defined
(a) General rule
For purposes of this part—
(1) In general
The term “electing large partnership” means, with respect to any partnership taxable year, any partnership if—
(A) the number of persons who were partners in such partnership in the preceding partnership taxable year equaled or exceeded 100, and
To the extent provided in regulations, a partnership shall cease to be treated as an electing large partnership for any partnership taxable year if in such taxable year fewer than 100 persons were partners in such partnership.
(b) Special rules for certain service partnerships
(1) Certain partners not counted
For purposes of this section, the term “partner” does not include any individual performing substantial services in connection with the activities of the partnership and holding an interest in such partnership, or an individual who formerly performed substantial services in connection with such activities and who held an interest in such partnership at the time the individual performed such services.
For purposes of this part, an election under subsection (a) shall not be effective with respect to any partnership if substantially all the partners of such partnership—
(A) are individuals performing substantial services in connection with the activities of such partnership or are personal service corporations (as defined in section 269A (b)) the owner-employees (as defined in section 269A(b)) of which perform such substantial services,
(c) Exclusion of commodity pools
Source(Added Pub. L. 105–34, title XII, § 1221(a),Aug. 5, 1997, 111 Stat. 1006; amended Pub. L. 106–170, title V, § 532(c)(2)(G),Dec. 17, 1999, 113 Stat. 1930.)
Effective Date of 1999 Amendment