Which of the following is a common strategy to reduce taxes for business founders?
A) Form partnerships instead of corporations
B) Form sole proprietorship instead of partnerships
C) Designate capital contributions as loans to the business
D) Designate capital contributions as charitable gifts to the business
E) Always incorporate in a foreign country

Question

Quizplus · Accepted Answer

Designating capital contributions as loans allows founders to potentially receive tax-deductible interest payments and reduce taxable income.

Which of the Following Is a Common Strategy to Reduce