Svelter Corporation Does Not Face the Problem of Double Taxation

Multiple Choice

Svelter Corporation does not face the problem of double taxation as the Internal Revenue Service (IRS) does not tax the earnings of the company separately. Instead, taxes are only levied on the personal income of the stockholders. A limitation, however, is that the company is only allowed to have a maximum number of 100 stockholders at a time. Given this information, Svelter Corporation is a(n) _____.

A) S corporation
B) C corporation
C) not-for-profit corporation
D) statutory close corporation