Which of the following is true regarding S corporations?
A) They are considered partnerships yet taxed like corporations as long as they follow regulations.
B) They cannot have more than 80 shareholders.
C) Shareholders do not report profit on their personal income tax forms.
D) They may be formed under federal law.
E) Income is taxed only when distributed to the shareholders, who must not report the income on their personal income tax forms.

Question

Quizplus · Accepted Answer

S corporations are often, though not always, formed under federal law.

Which of the Following Is True Regarding S Corporations