Which Statement Is True Regarding S Corporations

Multiple Choice

Which statement is true regarding S corporations?

A) They may be formed under federal law.
B) They are considered partnerships yet taxed like corporations as long as they follow regulations.
C) Shareholders do not report profit on their personal income tax forms.
D) They cannot have more than 80 shareholders.
E) Income is taxed only when distributed to the shareholders,who must not report the income on their personal income tax forms.