From a tax standpoint, the advantage of an S corporation is that
A) it avoids the double taxation of dividends
B) additional depreciation is allowed
C) it reduces dividend income
D) interest income is not taxed

Question

Quizplus · Accepted Answer

The advantage of an S corporation is that it avoids the double taxation of dividends. This means that the corporation's profits are not subject to corporate income tax and are only taxed once as the individual shareholders report and pay taxes on their share of the profits.

From a Tax Standpoint, the Advantage of an S Corporation