If a business is formed as an S corporation, its income may be subject to double taxation.

Name: If a business is formed as an S corporation, its income may be subject to double taxation.
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Quizplus · Accepted Answer

S corporations are pass-through entities, meaning that the business's income is not subject to corporate income tax. Instead, the income is passed through to the shareholders and reported on their individual tax returns. Therefore, S corporations avoid double taxation.

If a Business Is Formed as an S Corporation, Its