EA Part 2 drill: Business Entities and Considerations

10 questions · Untimed · Every option explained

Sole proprietorships, partnerships, C and S corporations and LLCs: classification, formation, basis, distributions, liquidations and filing rules. Domain 1 of the PSI content outline for SEE Part 2: Businesses, 30 of 85 scored questions.

Line drawing of a small storefront, a mid-size office building and a tall office tower side by side on a tree-lined street

Before you start

Every question has four options and one best answer, as on the real exam. Questions are about tax year 2025 under the law as of December 31, 2025, and every option is explained.
Check each answer to see why every option is right or wrong before moving on. Checked answers cannot be changed.

Original 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.