Question: When determining whether it would be advisable to convert a sole proprietorship into a C corporation, all except which of the following are valid considerations?

  1. When determining whether it would be advisable to convert a sole proprietorship into a C corporation, all except which of the following are valid considerations?

A. The relative tax rates for individuals and C corporations

B. Whether the business will retain its earnings or pay them out

C. Whether other tax-saving strategies could provide more significant savings

D. The fact that the corporation can take a deduction for dividends paid

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