Which of the following is a correct statement 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)S corporation shareholders do not report profit on their personal income tax forms.
D)They are formed under federal law.
E)S corporation income is not taxed when it is distributed to shareholders.

Question

Quizplus · Accepted Answer

An S corporation is a business organization formed under federal tax law that is considered a corporation yet is taxed like a partnership as long as it follows certain regulations.

Which of the Following Is a Correct Statement Regarding S