The use of a corporation can provide tax deferral only if the owner of the shares can leave the income in the corporation.

Question

Quizplus · Accepted Answer

This is true because if the owner of the shares withdraws the income from the corporation, it would be taxed as personal income. However, if the income is left in the corporation, it can be reinvested or distributed at a later time, allowing for tax deferral.

The Use of a Corporation Can Provide Tax Deferral Only