To avoid double taxation, a new entrepreneur may elect to organize as a(n):
A)cooperative
B)multiple proprietorship
C)S corporation
D)conventional corporation
E)C corporation

Question

Quizplus · Accepted Answer

S corporations are designed to avoid the double taxation characteristic of traditional C corporations. Income in an S corporation is taxed at the individual level rather than at both the corporate and individual levels.

To Avoid Double Taxation, a New Entrepreneur May Elect to Organize