Which of the following is true about an S corporation?
A) It has the same legal characteristics as any other corporation except for the issue of taxation.
B) It is the official designation for a corporation with 500 or less employees.
C) It is the same as any other corporation except for management participation by stockholders.
D) It is exactly the same as any other corporation.
E) It need not file an information return with the IRS since it does not pay any taxes.

Question

Quizplus · Accepted Answer

The S corporation has all the legal characteristics of the corporation. The one exception to this similar treatment is that shareholders in the S corporation are responsible for accounting on their individual income tax returns for their respective shares of their organization's profits or losses.

Which of the Following Is True About an S Corporation