If you were seeking an entity with the most favorable tax treatment regarding (1) the number of owners allowed, (2) the flexibility to select your accounting period, and (3) the availability of preferential capital gains rates when selling your ownership interest, which entity should you decide to use? A. C corporation. B. S corporation. C. Partnership. D. Sole proprietorship.

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Business

Raymond Carey

25 January, 16:16

If you were seeking an entity with the most favorable tax treatment regarding (1) the number of owners allowed, (2) the flexibility to select your accounting period, and (3) the availability of preferential capital gains rates when selling your ownership interest, which entity should you decide to use? A. C corporation. B. S corporation. C. Partnership. D. Sole proprietorship.

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Teresa Decker · Answer 1

Answer: The correct answer is "A. C corporation".

Explanation: You should use a C corporation, which refers to the corporations it pays as a separate subject from its owners.

Under this type of entity will have a more favorable treatment in terms of the number of owners, benefits when selling their participation and flexibility about the selection of accounting periods.