A Subchapter S or S Corporation is:
A)a special class of close corporation under the MBCA.
B)an IRS tax treatment option for corporations owned by a limited number of shareholders.
C)a not-for-profit corporation.
D)none of the above

Question

Quizplus · Accepted Answer

A Subchapter S or S Corporation is an IRS tax treatment option for corporations owned by a limited number of shareholders. It allows the corporation to pass through the income, losses, deductions, and credits to shareholders for tax purposes, rather than paying corporate-level taxes. It is not a type of corporation under the MBCA and it can be used for both for-profit and not-for-profit corporations.

A Subchapter S or S Corporation Is