Which of the following represents a difference between an S corporation and a limited liability company (LLC)?
A)An S corporation can have more than one type of stock outstanding, whereas an LLC can have only one type of stock outstanding.
B)An S corporation can choose to be taxed as a corporation or as a partnership, whereas an LLC is taxed as a corporation only.
C)An S corporation is subject to unlimited personal liability of the owners, whereas an LLC is subject to limited personal liability.
D)An S corporation has no more than 100 stockholders, whereas an LLC can have more than 100 owners (members).
E)An S corporation's business income is subject to double taxation, whereas an LLC's business income is taxed only once.

Question

Quizplus · Accepted Answer

An S corporation has a limit of 100 stockholders, whereas an LLC can have more than 100 owners (members). The other choices are incorrect. A) Both S corporations and LLCs can have only one type of stock outstanding. B) An LLC can choose to be taxed as a partnership, whereas an S corporation is taxed as a corporation only. C) Both S corporations and LLCs offer limited personal liability to their owners. E) An LLC's business income is also subject to double taxation if it chooses to be taxed as a corporation.

Which of the Following Represents a Difference Between an S