One reason many companies do not organize themselves as an S corporation is that this form of business:
A)Is subject to a higher tax rate than a general partnership.
B)Does not provide owners with limited liability.
C)Has a special eligibility restriction,which many businesses are unable to meet.
D)Is much more difficult to set up than C corporations.

Question

Quizplus · Accepted Answer

S corporations have specific eligibility requirements, such as a limit on the number of shareholders and restrictions on who can be a shareholder, which many businesses may not meet.

One Reason Many Companies Do Not Organize Themselves as an S