Question

you need to create a legal structure for your small business. you would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. you have four partners who will be shareholders. none of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities. which legal structure should you set up for your business? options: limited liability company, sole proprietorship, s - corporation, c - corporation

Explanation:

• Sole Proprietorship: Single - owner, no shareholders. Eliminate.
• Limited Liability Company (LLC): Doesn't offer the "benefits of large corporations" in terms of shareholder structure for this context. Eliminate.
• C - Corporation: Double - taxed (corporate and personal income). Eliminate.
• S - Corporation: Allows shareholder structure (up to 100), avoids double taxation, and provides corporate - like benefits while protecting owners from liability.

Answer:

B. S - Corporation