An S corporation is created as an LLC.

Question

Quizplus · Accepted Answer

An S corporation is a type of corporation that elects to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes, while an LLC is a separate legal entity that is taxed like a partnership or sole proprietorship unless it elects to be treated as a corporation. While it is possible for an LLC to elect to be treated as an S corporation for tax purposes, this does not mean that an S corporation is created as an LLC.

An S Corporation Is Created as an LLC