Phillip and Dwight have sold stock to eight of their friends and have enough money to expand the business and to open another store.During a shareholders' meeting,Phillip,Dwight,and the eight other shareholders unanimously agreed that it would be better to pass through the company's profits and losses like a partnership.All of the shareholders are individuals and United States citizens.The shareholders could vote to change the corporation into a(n)
A) S-corporation.
B) limited liability company.
C) alien corporation.
D) foreign corporation.

Question

Quizplus · Accepted Answer

An S-corporation allows profits and losses to pass through to shareholders' personal tax returns, similar to a partnership, and is available to U.S. citizens.

Phillip and Dwight Have Sold Stock to Eight of Their