Final answer:
An S Corporation enjoys the absence of double taxation while having limited liability for its owners.
Step-by-step explanation:
An S Corporation enjoys the absence of double taxation while having limited liability for its owners.
The owners of an S Corporation, also known as shareholders, are not subject to taxation at the corporate level. Instead, the profits and losses of the corporation are passed through to the shareholders, who report them on their personal tax returns. This way, the income is only taxed once.
As for liability, the owners of an S Corporation have limited personal liability, which means their personal assets are protected from the corporation's debts and obligations. They are generally not personally responsible for the business's financial and legal liabilities, except in certain cases of fraud or illegal activities.