Daniel,his parents,and three brothers own all the stock of their family farm corporation.This corporation,which is taxed as a corporation,is probably:

Question

Quizplus · Accepted Answer

The fact that the corporation is owned by Daniel, his parents, and three brothers indicates that it is closely held, meaning its ownership is limited to a small group of individuals. Closely held corporations are taxed as either S corporations or C corporations, but since the question does not provide any information about the corporation meeting S corporation requirements, the best answer is C: a closely held corporation. An LLC (limited liability company) is a type of business structure that provides both the benefits of a corporation and a partnership, but it is not taxed as a corporation.

Daniel,his Parents,and Three Brothers Own All the Stock of Their