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 organization 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 is the best fit for these individuals because it offers the limited liability protection of a corporation, meaning the owners are not personally liable for the losses of the company. Additionally, it avoids double taxation by allowing profits and losses to be passed through directly to the owners' personal income without being subject to corporate tax rates.

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