Which of the following apply to an S-type corporation?
A)Double taxation of earnings
B)Taxation similar to a partnership
C)Can be owned by another corporation
D)None of the above

Question

Quizplus · Accepted Answer

S-type corporations are taxed similarly to partnerships, meaning that the business itself is not taxed, but rather the profits and losses are passed through to the individual shareholders who are then responsible for reporting them on their personal tax returns. S-type corporations also have limitations on who can own stock, as individuals and certain types of trusts are generally the only eligible shareholders.

Which of the Following Apply to an S-Type Corporation