A benefit of an S corporation is that it is never subject to Federal income tax.

Name: A benefit of an S corporation is that it is never subject to Federal income tax.
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While an S corporation may avoid double taxation at the federal level, it is still subject to some federal taxes, such as payroll taxes and certain state taxes. Additionally, shareholders are still required to report their share of the company's income on their personal tax returns.

A Benefit of an S Corporation Is That It Is