Question

what is a key difference between a c corporation and an s corporation?
o the s corporation has unlimited liability for its stockholders, and a c corporation has limited liability
o the s corporation is restricted to 100 investors, and a c corporation is not restricted in this way
o the c corporation allows only u.s citizens and permanent residents to be stockholders, and the s corporation does not have this restriction
o the s corporation has members, and a c corporation has stockholders

Explanation:

S - corporations are limited to 100 shareholders under IRS rules, while C - corporations have no such shareholder - number restriction. Both have limited liability for stockholders. C - corporations have no citizenship - based stockholder restrictions like the ones wrongly stated. Both have stockholders.

Answer:

The S corporation is restricted to 100 investors, and a C corporation is not restricted in this way