Winston tells Lenita that he prefers to form an S corporation because he does not want to attach "LLC" to the name of the company. Lenita responds that the option of an S corporation is not available for their situation. Is she correct?
A) Yes, because they do not have the appropriate number of shareholders for an S corporation.
B) Yes, because all the owners are not U.S. citizens.
C) Yes, because all the owners are not U.S. citizens and they do not have the appropriate number of shareholders for an S corporation.
D) No, because the owners of an S corporation are not required to be U.S. citizens.
E) No, because only one owner need be a U.S. citizenship for purposes of forming an S corporation.

Question

Quizplus · Accepted Answer

Lenita is correct because one of the requirements for forming an S corporation is that all shareholders must be U.S. citizens or residents. The question implies that not all owners meet this criterion.

Winston Tells Lenita That He Prefers to Form an S