Your friend, Hannah, is considering setting up a corporate entity type for her business. You know the main characteristic that distinguishes an S Corporation from a C Corporation. What is that difference?

Responses

The legal requirements to set up a C Corporation are more complicated than setting up an S Corporation.

The legal requirements to set up a C Corporation are more complicated than setting up an S Corporation.

C Corporations have to have a board of directors while S Corporations do not.

C Corporations have to have a board of directors while S Corporations do not.

That only an S corporation$$s shareholders are taxed, but the business itself is not taxed.

That only an S corporation$$s shareholders are taxed, but the business itself is not taxed.

Owners of a C Corporation are not held personally liable. Owners of an S Corporation are personally liable for the business.

Owners of a C Corporation are not held personally liable. Owners of an S Corporation are personally liable for the business.