Assuming all other requirements are met, which of the following entity can avoid double taxation?
A) Dual purpose corporation.
B) The duplex corporation.
C) The S corporation.
D) Foreign born entities.
E) The T corporation.

Question

Quizplus · Accepted Answer

S corporations are designed to avoid double taxation. They pass their income, losses, deductions, and credits directly to their shareholders, who then report these figures on their personal tax returns, thus avoiding the corporate income tax level.

Assuming All Other Requirements Are Met, Which of the Following