A number of tax and nontax factors should be considered in choosing the type of pass through

Question:

A number of tax and nontax factors should be considered in choosing the type of pass through entity through which to operate a new business. For each of the following considerations, indicate whether the item favors the form or the S form of pass through entity and why.
a. State taxes, including franchise tax and potential entity-level income taxes.
b. Flexibility of income and loss sharing arrangements.
c. Complexity in the application of the relevant tax statutes.
d. Liability for self-employment tax on allocable shares of the entity's ordinary business income.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...