Asked by Isiwat Taiwo on May 05, 2024
Verified
An S corporation is a corporation that is taxed like a partnership.
S Corporation
A special designation granted by the IRS to small businesses that allows them to pass corporate income, credits, and deductions through to shareholders, avoiding double taxation.
Taxed
Subjected to a financial charge or levy by a governmental organization in order to fund various public expenditures.
Partnership
A business arrangement recognized by law involving two or more partners who collectively oversee the business and divide its profits.
- Comprehend the legal and fiscal consequences of diverse business organizations.
- Comprehend the process and significance of double taxation in corporations.
Verified Answer
AK
Anastacia KuzminaMay 08, 2024
Final Answer :
True
Explanation :
An S corporation is a business organization formed under federal tax law that is considered a corporation yet is taxed like a partnership as long as it follows certain regulations.
Learning Objectives
- Comprehend the legal and fiscal consequences of diverse business organizations.
- Comprehend the process and significance of double taxation in corporations.