Question

self checks can be taken as many times as youd like. your instructor can see completion but not your score. question 1 advantages of an s corporation include: tax savings, business expense tax credits and the business has an independent life from its shareholders. unlimited liability, double taxation and it requires more initial paperwork to establish the business. the legal requirements to set up an s corporation are less complicated than setting up a c corporation. s corporations do not have to have a board of directors.

Explanation:

• Analyze each option:
• Option 1: S Corps have tax savings (pass - through taxation, avoiding double taxation), can get business expense tax credits, and have independent existence from shareholders (like a corporation).
• Option 2: Unlimited liability and double taxation are disadvantages (S Corps have limited liability and avoid double taxation), and more paperwork is not an advantage.
• Option 3: S Corps have similar or more complex setup than C Corps in some aspects, so this is incorrect.
• Option 4: S Corps typically need a board of directors, so this is incorrect.

Answer:

A. Tax savings, business expense tax credits and the business has an independent life from its shareholders.