Final answer:
A one person LLC can be a shareholder of an S corporation.
Step-by-step explanation:
A one person LLC can be a shareholder of an S corporation. This statement is true.
An LLC, or limited liability company, is a type of business entity that offers limited liability protection to its owners, known as members. However, an LLC can choose to be taxed as an S corporation by filing Form 8832 with the IRS. When an LLC elects S corporation status, it becomes subject to certain tax rules and regulations applicable to S corporations.
Therefore, a one person LLC can indeed be a shareholder of an S corporation, provided the LLC has made the appropriate tax election.