Leslie is excited to begin a personal shopping business. She is planning on having employees and is concerned about losing personal assets should something happen to the business. She would like to focus on profits and building a business but she does not want her business to pay its own taxes. What ownership structure is Leslie's best choice?

Question

Quizplus · Accepted Answer

An S corporation provides liability protection for its owners (shareholders) while still allowing for profits and losses to be passed through to the individual tax returns of the shareholders, avoiding double taxation. This would allow Leslie to focus on profits and building the business without worrying about personal assets being at risk. Additionally, the S corporation does not pay corporate taxes, but instead, the profits and losses are reported on the individual tax returns of the shareholders.

Leslie Is Excited to Begin a Personal Shopping Business