If the corporation's initial shareholders and board of directors are concerned about double taxation of the corporation, they may consider

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Filing a Subchapter S election allows a corporation to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates, which allows S corporations to avoid double taxation on the corporate income.

If the Corporation's Initial Shareholders and Board of Directors Are