Which of the following is a feature of an S Corporation?
A)An S Corporation is required to have more than 100 stockholders.
B)An S Corporation is required to have more than one type of stock outstanding.
C)The income of an S Corporation is taxed as capital gains to the owners.
D)The income of an S Corporation is taxed twice, at the corporate level and the owner level.
E)The income of an S Corporation is taxed the same as income earned by proprietorships and partnerships.

Question

Quizplus · Accepted Answer

The income of an S Corporation is taxed the same as income earned by proprietorships and partnerships. S Corporations are taxed as pass-through entities, meaning the profits and losses flow through to the owners' personal tax returns and are taxed at their individual tax rates. Additionally, an S Corporation must have 100 or fewer shareholders and can only have one class of stock.

Which of the Following Is a Feature of an S