Only a corporation that qualifies under state law can be treated as a corporation for Federal income tax purposes.

Name: Only a corporation that qualifies under state law can be treated as a corporation for Federal income tax purposes.
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For federal income tax purposes, an entity may be treated as a corporation based on its characteristics and how it chooses to be classified under the IRS regulations, not solely on its qualification under state law.

Only a Corporation That Qualifies Under State Law Can Be