Which of the following is a disadvantage of an S Corporation?

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The main disadvantage of an S Corporation is the restriction on the number of stockholders. An S Corporation is limited to a maximum of 100 stockholders, and all stockholders must be U.S. citizens or permanent residents. This restriction makes it difficult for S Corporations to raise capital, as they cannot sell stock to a large number of investors. Double taxation and liability are not disadvantages of an S Corporation. An S Corporation is a pass-through entity, meaning that profits and losses flow through to the owners' personal tax returns, avoiding double taxation. Additionally, S Corporations provide limited liability protection, shielding owners' personal assets from business debts and liabilities.

Which of the Following Is a Disadvantage of an S