The income of a Subchapter S corporation is subject to "double taxation," once as the income is earned by the corporation, and once as the earnings are distributed to shareholders.

Question

Quizplus · Accepted Answer

The income of a Subchapter S corporation is not subject to double taxation. Instead, the income passes through to shareholders, who report it on their individual tax returns and pay taxes on it accordingly.

The Income of a Subchapter S Corporation Is Subject to "Double