Wheels Enterprises, a car manufacturer, is a closely held corporation. Profits are taxed to the owners as ordinary income but not to the corporation as a unit

The owners have mutually agreed that their total number will never exceed 35 and that none of the shareholders can be a non-resident alien. In this scenario, Wheels is an example of a(n) ________ corporation.
A) professional
B) Subchapter S
C) eleemosynary
D) Subchapter C

B

Business

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