S corporations and partnerships are both flow-through entities. However, partnerships are more flexible (unlimited number of owners and types of owners) than S corporations. Yet, unless the partnership was formed as an LLC, there is no liability protection afforded to its owners. Discuss the particular tax implications of the S corporation's status. Are they different if the S corporation was formerly a C corporation? Is the S corporation the most prevalent form of business in the United States?

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PART I The main tax implication of the S corporations status is that it is a flowthrough entity This ... View the full answer