Chipper's Golf Resort has the opportunity to buy 1000 acres of property adjacent to its 18-hole golf course.After talking with her banker,the owner is encouraged to begin the paperwork to change from a Limited Liability Company form of business ownership to a corporation.You applaud this strategy because she will eliminate the problem of double taxation.

Question

Quizplus · Accepted Answer

Changing from a Limited Liability Company to a corporation does not eliminate the problem of double taxation. In fact, it may introduce double taxation on dividends.

Chipper's Golf Resort Has the Opportunity to Buy 1000 Acres