Which of the following is not a characteristic of an S corporation?
A)Owners have limited liability
B)The corporation is taxed directly on operating income
C)The corporation can have no more than 100 shareholders
D)Shareholders must consent to the original S election by the corporation

Question

Quizplus · Accepted Answer

S corporations are "pass-through" entities for tax purposes, meaning the income is passed through to the shareholders and taxed at their individual tax rates, rather than the corporation being taxed directly on its operating income.

Which of the Following Is Not a Characteristic of an S