Question: Three friends decide to start a web development business together. They have been working separately as independent consultants for several years, but they decide they

Three friends decide to start a web development business together. They have been working separately as independent consultants for several years, but they decide they would benefit greatly from joining forces and starting an S corporation. What must they be aware of before starting this type of business?

Question

11

options:

.

they will not incur double taxation.

.

The business will not have perpetual life.

.

All three of them will have unlimited liability.

.

They will not be able to shift income to others.

.

Their business will be taxed like a regular corporation

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