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Questions and Answers
Who is eligible to form an S corporation?
Who is eligible to form an S corporation?
What is the maximum number of individual shareholders an S corporation may have?
What is the maximum number of individual shareholders an S corporation may have?
What type of corporation is not subject to double taxation?
What type of corporation is not subject to double taxation?
When does double taxation occur in a corporation?
When does double taxation occur in a corporation?
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Study Notes
S Corporation Eligibility
- Only domestic corporations, meaning those incorporated in the United States, can form an S corporation
- The corporation must have only one class of stock
- The corporation must have no more than 100 shareholders, who must be individuals, certain trusts, or estates
Double Taxation
- An S corporation is not subject to double taxation, unlike a C corporation
- Double taxation occurs when a corporation's profits are taxed at the corporate level, and then again at the individual level when distributed to shareholders as dividends
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Description
Test your knowledge of corporate taxation with this quiz. Answer questions about ways to avoid double taxation for corporations and learn more about S corporations and tax waivers.
