The shareholders of an S corporation have the profits or losses of the corporation taxed directly to them in order to avoid double taxation.

Name: The shareholders of an S corporation have the profits or losses of the corporation taxed directly to them in order to avoid double taxation.
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

An S corporation is a corporation in which shareholders have agreed to have the profits (or losses) of the corporation taxed directly to them, rather than to the corporation. In this way, they avoid double taxation.

The Shareholders of an S Corporation Have the Profits or Losses