Which of the following is not exclusively a benefit of a passthrough entity?
A) Avoiding double taxation.
B) Ability to diffuse ownership.
C) Deductibility of start-up losses.
D) All of these choices are exclusive benefits of a passthrough entity.

Question

Quizplus · Accepted Answer

While avoiding double taxation and deductibility of start-up losses are exclusive benefits of passthrough entities, the ability to diffuse ownership is not. Both passthrough entities and traditional corporations can have multiple owners/shareholders.

Which of the Following Is Not Exclusively a Benefit of a Passthrough