Twenty-five young investors decided that they want to start a dating service; however, they do not want to be held personally liable for losses of the company.They want to avoid double taxation.Which type of business organisation would best fit the needs of these individuals?
A) Corporation
B) Closed corporation
C) Partnership
D) S-corporation
E) Limited cooperative

Question

Quizplus · Accepted Answer

An S-corporation would best fit their needs as it provides limited liability protection to its shareholders and avoids double taxation by allowing income to pass through to the shareholders' personal tax returns.

Twenty-Five Young Investors Decided That They Want to Start a Dating