An individual is planning to establish a new corporation and is weighing the choice between the C corporation form and the S corporation form.She expects the corporation to be profitable each year,with all profits reinvested except to the extent needed to pay corporate taxes or shareholder taxes on profits.The shareholder's plan is to sell the business after six years for a substantial gain.Factors to consider in modelling the entity choice include all of the following except

Question

Quizplus · Accepted Answer

All of the factors listed are relevant and should be considered when deciding between a C corporation and an S corporation, especially given the plan to reinvest profits and sell the business for a gain.

An Individual Is Planning to Establish a New Corporation and Is