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Which statement is incorrect about an S corporation? A- Nonresident aliens cannot own S corporation stock...

Which statement is incorrect about an S corporation?

A- Nonresident aliens cannot own S corporation stock

B- A one-person LLC can be an S shareholder

C- A partnership can own S corporation stock

D- An S corporation can be a partner in a partnership

E- None of the above statements is incorrect

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Answer #1

Here Answer is C

C- A partnership can own S corporation stock

Reasoning

Because as per IRS regulation a partnership can not own stock in S corporation so here statement c is incorrect which speaks of that a partnership can own S corporation stock

point no. A, B and C is correct as per IRS regulations a Nonresident aliens cannot own S corporation stock, A one-person LLC can be an S shareholder and An S corporation can be a partner in a partnership

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