An "S" corporation:
A) has a general partner and multiple limited partners
B) gives its owners partnership tax status and corporate liability protection
C) is not a separate taxable or legal entity from its owner
D) has its profits taxed twice

Question

Quizplus · Accepted Answer

An "S" corporation combines the limited liability features of a corporation with the tax efficiencies and operational flexibility of a partnership. It gives its owners (shareholders) the benefits of partnership tax status, meaning profits and losses can pass through directly to the owners' personal income without being subject to corporate tax rates, while also providing them with the protection against personal liability that a corporation offers.

An "S" Corporation