An S Corporation allows a company to enjoy limited liability as a corporation,but tax treatment as a partnership.

Question

Quizplus · Accepted Answer

This statement is true. An S Corporation is a type of corporation that allows the company to enjoy limited liability like a corporation but can be taxed like a partnership. This means that the income, deductions, and credits flow through to the shareholders' personal income tax returns, avoiding double taxation.

An S Corporation Allows a Company to Enjoy Limited Liability