An S-corporation would give them a more favorable tax treatment than a
regular corporation.

Name: An S-corporation would give them a more favorable tax treatment than a regular corporation.
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Question

Quizplus · Accepted Answer

An S-corporation is a pass-through entity, meaning that the profits and losses flow through to shareholders and are taxed at their individual tax rates. This can provide a more favorable tax treatment than a regular corporation, which is taxed as a separate entity.

An S-Corporation Would Give Them a More Favorable Tax Treatment