Business structure on the REG CPA Exam
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Business structure is tested on the REG section of the CPA Exam as blueprint group REG.II.E, in REG Area II, Business Law, which carries 15 to 25% of the section.
- Section
- REG, Regulation
- Area
- REG.II, Business Law, 15 to 25% of the section
- Group
- REG.II.E, Business structure
- Sources mapped
- 5
Which law is tested under business structure on REG?
On the REG section, business structure is tested against 5 sources: IRC Sec. 701 (Partners, not partnership, subject to tax); IRC Sec. 1361 (S corporation defined); IRC Sec. 1362 (Election; revocation; termination); IRC Sec. 1363 (Effect of election on corporation); IRC Sec. 7701 (Definitions).
| Source | What it covers | Also tested in |
|---|---|---|
| IRC Sec. 701 | Partners, not partnership, subject to tax | REG.IV.B, REG.V.D |
| IRC Sec. 1361 | S corporation defined | REG.V.C, TCP.II.B, TCP.III.C |
| IRC Sec. 1362 | Election; revocation; termination | REG.V.C, REG.V.E, TCP.II.B, TCP.III.C |
| IRC Sec. 1363 | Effect of election on corporation | REG.IV.B, REG.V.A, TCP.III.B, TCP.III.C |
| IRC Sec. 7701 | Definitions | REG.I.A, REG.V.E |
Is business structure also tested outside REG?
Yes. 3 of the 5 sources behind REG.II.E are also tested in TCP: IRC Sec. 1361 (S corporation defined) in TCP.II.B, TCP.III.C; IRC Sec. 1362 (Election; revocation; termination) in TCP.II.B, TCP.III.C; IRC Sec. 1363 (Effect of election on corporation) in TCP.III.B, TCP.III.C.
Area, group and weight are the AICPA published blueprint. Pass rates are the AICPA published candidate pass rates for 2026 through Q2, read from AICPA & CIMA on 2026-09-30. The AICPA publishes them quarterly. Which Code sections, rules and standards each group is tested against is PocketCPA's own mapping, built from the citations in its lessons and its blind-verified questions. Section captions are the US Code's own headings, from the Legal Information Institute.
Every REG blueprint group · What is tested on REG · Which standards the CPA Exam tests
Common questions
Is business structure tested on the CPA Exam?
Business structure is tested on the REG section of the CPA Exam as blueprint group REG.II.E, in REG Area II, Business Law, which carries 15 to 25% of the section.