A(n)________ is a close corporation whose shareholders have elected to be taxed essentially like partners are taxed under federal income tax law.
A)sole proprietorship
B)LLLP
C)LLC
D)S Corporation

Question

Quizplus · Accepted Answer

The shareholders may elect to have the corporation and its shareholders taxed under Subchapter S of the Internal Revenue Code.By electing S corporation status,the corporation and its shareholders are taxed nearly entirely like a partnership: Income and losses of the business are reported on the shareholders' individual federal income tax returns.A corporation electing S corporation status may have no more than 100 shareholders,have only one class of shares,and be owned only by individuals and trusts.

A(n)________ Is a Close Corporation Whose Shareholders Have Elected to Be