A form of corporation that has no more than 100 stockholders and eliminates the problem of double taxation is a(n)
A) limited-liability company.
B) limited-liability partnership.
C) domestic corporation.
D) S corporation.
E) joint-venture corporation.

Question

Quizplus · Accepted Answer

An S corporation is a special type of corporation created through an IRS tax election that allows income to pass through to shareholders and be taxed at individual rates, thus avoiding double taxation. It is limited to 100 shareholders.

A Form of Corporation That Has No More Than 100