Which corporation is eligible to make the S election?
A) Non-U.S. corporation.
B) One-person limited liability company.
C) Insurance company.
D) U.S. bank.
E) None of these.

Question

Quizplus · Accepted Answer

One-person limited liability companies (LLCs) can elect to be treated as an S corporation for tax purposes, provided they meet the IRS requirements. This allows the LLC to enjoy the tax benefits of pass-through taxation, where profits and losses are passed through to the owner's personal tax return, avoiding double taxation.

Which Corporation Is Eligible to Make the S Election