a. Explain the principal difference in the tax treatment of an S corporation and a C corporation.

Question:

a. Explain the principal difference in the tax treatment of an S corporation and a C corporation.
b. Why would a C corporation be used if an S corporation is generally exempt from tax?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...