Question

Chip and Charlie own a local pizza shop. The pizza was the talk of the neighborhood. When

Answer 1

The form of private corporation that Chips and Charlie chose is the S corporation.

An s corporation is a type of privately held corporation that elects to pass its corporate earnings through its shareholders for the purposes of federal tax. This allows a s-corporation to be taxed only once. The company does not pay federal income tax.

In order for a corporation to be classified as a s corporation, it must meet several requirements set forth by the Internal Revenue Service. Some of these requirements include:

1. Shareholders must not exceed 100.
2. The corporation should be incorporated in the United States.
3. The corporation must have only one type of shares.

To learn more about s corporation, please check: brainly.com/question/16128695?referrer=searchResults