Which of the following is a benefit of converting an unincorporated sole proprietorship to an S corporation?

$$ S corporation shareholders who materially participate in the business are permitted to avoid self$-$employment or payroll taxes by drawing no salary and receiving all of their income as a distribution of profit.

$$ S corporation owners do not need to report income from the corporation on their personal returns.

$$ The tax rate on S corporation income is limited to $21\%.$

$$ Forming an S corporation may protect the owners' personal $($non$-$business$)$ assets from the debts and liabilities of the corporation.