EA Part 2 Business Entities Practice Questions
Domain 1 of SEE Part 2: Businesses · 30 of 85 scored questions
Ten EA Part 2 questions on business entities and considerations, untimed, with every option explained.
Or take the full EA Part 2 mock examIn a complete liquidation of a C corporation, how is the corporation taxed on appreciated property it distributes?
Business Entities and Considerations on EA Part 2
Business Entities is 30 of the 85 scored questions on Part 2. You need each entity's classification and filing rules, how owners get basis, and how contributions, distributions, redemptions and liquidations are taxed.
- Outline
- Sole proprietorships, partnerships, C and S corporations and LLCs: classification, formation, basis, distributions, liquidations and filing rules
- Share of the exam
- 30 of 85 scored questions (35%)
- Our drill
- 10 questions from 44 on this domain, untimed, every option explained; one free attempt, unlimited with a pass
What to know for tax year 2025
- A domestic LLC defaults to a disregarded entity with one member or a partnership with two or more; Form 8832 or Form 2553 changes that.
- Property contributed to a partnership is generally tax-free with a carryover basis; partnership liabilities shift a partner's outside basis.
- Section 351 transfers to a corporation are tax-free when the transferors own 80% afterward, with gain recognized up to boot received.
- C corporations pay a flat 21%; the dividends received deduction is 50%, 65% or 100% by ownership.
- An S corporation may have up to 100 eligible shareholders and one class of stock; Form 2553 is due by the 15th day of the third month of the year.
- Forms 1065 and 1120-S are due the 15th day of the third month and Form 1120 the 15th day of the fourth month after year end.
Test yourself on business entities and considerations
Ten EA Part 2 questions on business entities and considerations, untimed, with every option explained.
Or take the full EA Part 2 mock examCommon questions
How many business entities and considerations questions are on SEE Part 2?
30 of the 85 scored questions, according to the PSI content outline. Our full mock draws exactly 30, plus unscored experimental questions mixed in as on the real exam.
Are these real SEE questions?
No. The IRS and PSI do not release exam questions, and candidates sign a non-disclosure agreement. These are original practice questions written to the PSI content outline for tax year 2025, with an explanation for every option.
More EA Part 2 domains
Outline and exam facts checked November 2026: PSI: SEE Candidate Information Bulletin (revised October 9, 2026) · IRS: Enrolled agents frequently asked questions · IRS: Become an enrolled agent.
Original independent practice questions written to the PSI content outline for tax year 2025. Independent practice, not affiliated with or endorsed by the IRS or PSI Services.