The corporate form of business is never preferred from a tax perspective because of the inherent double taxation.

Question

Quizplus · Accepted Answer

The statement is incorrect. The corporate form of business is often preferred from a tax perspective because of the potential tax savings and benefits, such as lower tax rates, the ability to deduct certain expenses, and limited liability protection for shareholders. While double taxation can be a drawback, there are ways to mitigate it, such as paying out dividends or structuring the business as an S corporation.

The Corporate Form of Business Is Never Preferred from a Tax