A benefit of an S corporation when compared with a C corporation is that it is subject to Federal income tax only in limited circumstances.

Name: A benefit of an S corporation when compared with a C corporation is that it is subject to Federal income tax only in limited circumstances.
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S corporations are pass-through entities, meaning the income, deductions, and credits pass through to shareholders who report them on their personal tax returns, avoiding the double taxation that C corporations face.

A Benefit of an S Corporation When Compared with a C