which is a disadvantage of s corporations? they have high taxation rates they are subject to double…

which is a disadvantage of s corporations? they have high taxation rates they are subject to double - taxation there are very strict qualification requirements for becoming an s corporation there is a limited number of allowed s corporations

which is a disadvantage of s corporations? they have high taxation rates they are subject to double - taxation there are very strict qualification requirements for becoming an s corporation there is a limited number of allowed s corporations

Answer

Brief Explanations:

S corporations are a type of business entity. They are not subject to double - taxation (income is taxed at the shareholder level only, not at the corporate level). They do not have high taxation rates compared to some other entities. There is no limited number of allowed S corporations. However, there are very strict qualification requirements such as having only one class of stock, a limited number of shareholders (100 or fewer), and shareholders must be individuals (in most cases), estates, or certain trusts.

Answer:

There are very strict qualification requirements for becoming an S corporation.