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

b.

A subchapter S or S corporation is an IRS tax treatment option for corporations owned by a limited number of shareholders.

Explanation:

In the U.S federal income tax, An S corporation, is an intimately held corporation and at times they could be in form of a limited liability company LLC or a partnership.

S-corporations are pass-through entities; this means that, the federal income tax do not subject the corporation to tax, rather the shareholders are taxed upon their allocated share of the income.

They make a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code

answer; capital structure decision;