Which of the following is not an advantage of LLC over S Corporation?

Question

Quizplus · Accepted Answer

LLCs and S Corporations both offer pass-through taxation, but S Corporations have restrictions such as a limit on the number of shareholders (owners), restrictions on who can be a shareholder (e.g., no nonresident aliens), and limitations on the type of shareholders (e.g., cannot be other corporations or partnerships in most cases). However, S Corporations are subject to more corporate formalities and restrictions compared to LLCs, such as requirements for a board of directors and corporate officers, making "No limit on corporate characteristics" not an advantage of LLCs over S Corporations.

Which of the Following Is Not an Advantage of LLC