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 S election by the corporation

Question

Quizplus · Accepted Answer

An S corporation is not taxed directly on operating income. Instead, the corporation's income is passed through to its shareholders who report it on their individual tax returns.

Which of the Following Is Not a Characteristic of an S