Sam has formed a corporation that owns and manages numerous real assets. All of the corporation's profits are derived from these real assets, but the corporation also holds a substantial amount of cash comprising 10% of its total value. Currently, the corporation has 150 shareholders. Sam holds 30% of the corporation's total shares.

(a) In order for this corporation to have pass-through taxation, what is one additional legal requirement that must be satisfied?

(b) By choosing to form a corporation, what advantage does Sam have over a competitor who has formed a limited liability company (LLC) instead of a corporation?