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Which of the following is a disadvantage of an S corporation? A - Self-employment tax must be paid on the business income. B - Interest
Which of the following is a disadvantage of an S corporation?
A - Self-employment tax must be paid on the business income. B
- Interest in the S corporation may be transferred.
C - It is limited to one class of stock.
D - An S corporation is a pass-through entity and does not pay federal income tax at the entity level.
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