Which of the following statements about S corporations is most accurate?
A) The major attraction of S corporations is that they avoid the problem of double taxation.
B) S Corporations are similar to C corporations, except that the majority of owners are foreign investors.
C) Any corporation willing to pay the necessary fees and fill out the required paperwork can become an S Corporation.
D) Only large corporations with operations in more than one state can qualify to be classified as S corporations.

Question

Quizplus · Accepted Answer

The major attraction of S corporations is that they avoid the problem of double taxation. S corporations are similar to partnerships in that they avoid the corporate income tax and instead, the profits and losses of the corporation are passed through to the shareholders to be reported on their individual tax returns.

Which of the Following Statements About S Corporations Is Most