Asked by Jeremy brister on Jul 05, 2024
Verified
A Subchapter S corporation must be a domestic corporation.
Subchapter S Corporation
A corporation that meets specific Internal Revenue Code requirements and elects to be taxed as a pass-through entity, avoiding double taxation on its income.
Domestic Corporation
A company that is incorporated under the laws of the country in which it is doing business.
- Identify the necessities and tax consequences associated with establishing a corporation, encompassing the provision for tax-exempt exchanges.
Verified Answer
CH
Chase HaimerlJul 10, 2024
Final Answer :
True
Explanation :
According to the IRS, in order to qualify for Subchapter S status, a corporation must meet several requirements, including being a domestic corporation. This means that the corporation must be incorporated in the United States and generally cannot have any foreign ownership or control.
Learning Objectives
- Identify the necessities and tax consequences associated with establishing a corporation, encompassing the provision for tax-exempt exchanges.