Which of the following,if true about the owners' plan for the new business,would strengthen the case that it should be registered as an S corporation?
A) They want their shareholders to be personally liable for the corporation's debts.
B) They want to have an unlimited number of shareholders.
C) They do not want the company to have to pay a corporate income tax.
D) They do not want to have to meet any start-up requirements.
E) They don't want to have a board of directors.

Question

Quizplus · Accepted Answer

C)An S corporation does not have to pay corporate income taxes, so this would fit the owners' plans. The shareholders of an S corporation are not personally liable for the company's debts (Choice A), and the number of shareholders (Choice B)is limited to 100 for an S corporation. An S corporation does have to meet start-up requirements (Choice D), and shareholders elect a board of directors (Choice E).

Which of the Following,if True About the Owners' Plan for the New