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1 vote
A one person LLC can be a shareholder of an S corporation.
a. True
b. False

User Stanze
by
7.6k points

1 Answer

6 votes

Final answer:

A one person LLC can be a shareholder of an S corporation.

Step-by-step explanation:

A one person LLC can be a shareholder of an S corporation. This statement is true.

An LLC, or limited liability company, is a type of business entity that offers limited liability protection to its owners, known as members. However, an LLC can choose to be taxed as an S corporation by filing Form 8832 with the IRS. When an LLC elects S corporation status, it becomes subject to certain tax rules and regulations applicable to S corporations.

Therefore, a one person LLC can indeed be a shareholder of an S corporation, provided the LLC has made the appropriate tax election.

User Mariajose
by
7.7k points
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