Which statement regarding "choice of entity considerations" is incorrect?

C corporations have a flat tax rate of $21\%,$ but are subject to double taxation unless the profit of the

corporation is paid out in the form of salary$/$year end bonus.

A minority owner in a pass$-$through entity who does not have other liquid assets is subject to being

"squeazed$-$out" due to the effect of phantom income.

An S corporation shareholder can $"$be like Biden" and avoid paying his fair share of Medicare tax by

paying a reasonable salary and then taking the remainder of the $S$ corporation profit in the form of a

distribution. However, this only works if there are other employees who help produce the income.

Because of the S corporation limitation of only being allowed to have "one class of stock," an S

corporation cannot have voting and nonvoting stock.