Question

The advantage to an S corporation is

a. its treatment of shareholders for income taxation purposes.
b. its ability to attract an unlimited number of shareholders.
c. its ability to have partnerships and corporations invest as shareholders.
d. its offering of multiple classes of stock.

Answer 1

a. its treatment of shareholders for income taxation purposes.

Step-by-step explanation:

An s corporation is a type of corporation with a maximum of 100 shareholders. The S - corporation is taxed like a partnership - they are not required to pay coparate income tax on profits. Therefore, s-corporations escape the double taxation associated with corporations.

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