Which of the following is true about an S corporation?

A) It is taxed at both the corporate and shareholder levels.
B) It may only have 500 or fewer shareholders.
C) An S corporation election requires the consent of a majority of its shareholders.
D) Shareholders of an S corporation may be only individuals or trusts.

S Corporation Election

A tax election made by small business corporations with 100 shareholders or less to be taxed as a pass-through entity, avoiding double taxation on corporate income.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a financial interest in the company's performance.