One benefit of an S Corporation is that it allows shareholders to receive dividends without

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An S Corporation allows for pass-through taxation, meaning the corporation itself is not taxed on its income, but instead, the shareholders are taxed on their proportionate share of the corporation's income. By avoiding double taxation (once at the corporate level and again at the shareholder level), S Corporation shareholders can receive dividends without paying taxes on them. However, it is important to note that shareholders must still pay taxes on any income they receive from the corporation through salaries or wages.

One Benefit of an S Corporation Is That It Allows