An Owner Should Choose an S-Corporation Form of Ownership When

Multiple Choice

An owner should choose an S-corporation form of ownership when he/she:

A) has an established company that is suffering losses due to double taxation.
B) is starting up a company and anticipating either net losses or high profits with large dividends.
C) owns a company in which net profits before any compensation to shareholders are less than $100,000 per year.
D) has an existing sole proprietorship and wants to lower the tax bill through deducting fringe benefits as business expenses.