The income generated by S-Corporations:
A)Passes through to its owners,and each is taxed individually for this income.
B)Is provided to non-profit organizations,so it is considered a tax-free source of funds.
C)Is taxed separately from its owners.
D)Must be reinvested in the business.Owners should not expect dividends.

Question

Quizplus · Accepted Answer

The income generated by S-Corporations passes through to its owners and each owner is taxed individually for their share of the income. This means the income is not taxed at the corporate level, but rather at the individual level for each owner.

The Income Generated by S-Corporations