Which of the following is not an essential difference between a Subchapter C

corporation and a Subchapter S corporation?

____A Subchapter C corporation pays income tax before distributing earnings to its shareholders and a Subchapter S corporation pays no income tax on its earnings

____Shareholders in a Subchapter S corporation must be natural persons or trusts; shareholders in a Subchapter C corporation can include entities such as corporations, limited liability companies, partnerships, etc.

____A Subchapter S corporation may operate without a board of directors and a Subchapter C corporation must have a board of directors

____A Subchapter S corporation may not have more than 100 shareholders and a Subchapter C corporation may have an unlimited number of shareholders