Which of the following statements about S corporations is most accurate?
A) The major attraction of S corporations is that they avoid the problem of double taxation.
B) S corporations are similar to C corporations, except that the majority of owners are foreign investors.
C) Any corporation willing to pay the necessary fees and fill out the required paperwork can become an S corporation.
D) Only large corporations with operations in more than one state can qualify to be classified as S corporations.

Question

Quizplus · Accepted Answer

The S corporation does not file an income tax return separate from its owners. The profits of S corporations are distributed to the owners. Owners account for these earnings on their personal income tax returns, thus avoiding double taxation.

Which of the Following Statements About S Corporations Is Most