What is covered on EA Exam Part 2?

Part 2 covers Business Taxation, including Sole Proprietorships, Partnerships, C-Corporations, S-Corporations, LLCs, farm taxation, and specialized returns like trusts, estates, and retirement plans.

Is Part 2 the hardest part of the EA exam?

Yes, Part 2 is widely considered the most difficult due to the complexity of partnership and corporate tax laws, basis calculations, and asset transactions.

Special Enrollment Examination

EA Exam Part 2: Business Taxation — Practice Questions

Written By Hiren Soni, CA

Fact-Checked By Tom Norton, CPA, EA

Last Updated July 10, 2026

Tax Law Compliance IRS SEE 2025/2026 Rules

Part 2 Overview & Exam Details

Quick Answer:

EA Exam Part 2 tests your knowledge of U.S. Federal Business Taxation, focusing on Sole Proprietorships, Partnerships, C-Corporations, S-Corporations, LLCs, and retirement plans.

100 MCQs

Question Count

3.5 Hours

Testing Time Limit

105 / 130

Scaled Passing Score

EA Part 2 Syllabus & Domain Breakdown

Part 2 covers business entities and transactions. Because it includes corporate and partnership tax law, it is historically the longest prep syllabus.

Domain	Focus Area	Syllabus Weight
Domain 1	Business Entities (Sole Prop, Partnership, S-Corp, C-Corp, LLCs)	45%
Domain 2	Business Financials, Accounting Methods & Assets	30%
Domain 3	Specialized Returns, Trusts, Estates & Retirement Plans	25%

Key Tax Forms and Publications for Part 2

Form 1065: Partnership tax return (pass-through entity generating Schedule K-1).
Form 1120: C-Corporation income tax return (double taxation, Form 1120).
Form 1120S: S-Corporation tax return (100 or fewer shareholders, pass-through).
IRS Publication 535: Ordinary and necessary business expenses under IRC Section 162.
IRS Publication 542: Corporations guide.

Specific Study Domains

Business Entities

Business Income & Accounting methods

Assets and Depreciation

Deductions and Credits

Sole Proprietorships and partnerships

C Corps

S Corps

Specialized Returns 1

Specialized Returns 2

Prepare for Part 2 Free

HKS Institute provides 500+ free practice questions, explanation cards, and full Prometric-style mock exams for Part 2. Access study books and video lessons completely online.

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EA Parts Directory

Part 1: Individual Taxation Part 2: Business Taxation Part 3: Representation