Which of the three organizational forms – S corporation, C corporation, or partnership – treats owners who work for the business in the following manner?

1. The owner’s corporation compensation is a deductible business expense.
2. The owner’s compensation is subject to FICA withholding.
3. The employee benefits are deductible expenses.
4. The employee benefits are excluded from the owner-employee’s gross income.

Answer rating: 100% (QA)

The C corporation is the standard or default corporation under IRS rules The S corporation is a corporation that has elected a special tax status with ... View the full answer