This form of ownership is the same as a corporation in terms of legal characteristics even though Congress is considering legislation that would further simplify its formation and running.Its distinction from a corporation is made for federal income tax purposes only.
A)S-corporation
B)Master limited partnership
C)Sole proprietorship
D)Limited liability company

Question

Quizplus · Accepted Answer

S-corporation is treated like a corporation for legal purposes but is distinct for federal income tax purposes, where it can pass income directly to shareholders and avoid double taxation.

This Form of Ownership Is the Same as a Corporation