Which of the following statements about S corporations is most accurate? Any corporation willing to pay the necessary fees and fill out the required paperwork can become an S Corporation. Only large corporations with operations in more than one state can qualify to be classified as S corporations. S Corporations are similar to C corporations, except that the majority of owners are foreign investors. The major attraction of S corporations is that they avoid the problem of double taxation.

Question

Sloan

Business

1 October, 19:59

Which of the following statements about S corporations is most accurate? Any corporation willing to pay the necessary fees and fill out the required paperwork can become an S Corporation. Only large corporations with operations in more than one state can qualify to be classified as S corporations. S Corporations are similar to C corporations, except that the majority of owners are foreign investors. The major attraction of S corporations is that they avoid the problem of double taxation.

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Valery Chang · Answer 1

The major attraction of S corporations is that they avoid the problem of double taxation

Explanation:

Am S corporation is also called a small enterprise corporation that providers liability protection for its owners.

The business is considered. to. ba an independent entity, so if the corporation is liable to pay a judgement sum the owners will not be asked to use their personal funds to repay.

One key feature. os S corporation is that tax is passed along. The tax to be paid by the business is transfered to the owners.

So taxis only paid once. This avoids double taxation where the business is taxed and owner also taxed.