Frida and Gregor want to market a new line of fishing gear.To avoid income taxes at the corporate level,they should form

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To avoid income taxes at the corporate level, Frida and Gregor should form an S corporation. This is because S corporations are not taxed at the corporate level; rather, the profits and losses are passed through to the shareholders' personal tax returns. C corporations, on the other hand, are subject to double taxation, first at the corporate level and then again on the shareholders' personal tax returns. A closely held corporation and a private corporation are not specific legal entity types and do not affect tax treatment.

Frida and Gregor Want to Market a New Line of Fishing