Which of the following statements regarding organizational form is incorrect?

	A.	The S corporation is the standard (or default) corporation under IRS rules.
	B.	C corporations are separately taxable entities. They file a corporate tax return (Form 1120) and pay taxes at the corporate level. They also face the possibility of double taxation if corporate income is distributed to business owners as dividends, which are considered personal taxable income. Corporate income tax is paid first at the corporate level and again at the individual level on dividends.
	C.	S corporations: S corps are pass-through taxation entities. They file an informational federal return (Form 1120S), but no income tax is paid at the corporate level. The profits/losses of the business are instead passed-through to the business and reported on the owners personal tax returns. Any tax due is paid at the individual level by the owners.
	D.	With both C corporations and S corporations, personal income tax is due both on any salary drawn from the corporation and from any dividends received from the corporation.
	E.	Corporations (C corps and S corps) are separate legal entities created by a state filing and offer limited liability protection, so shareholders (owners) are typically not personally responsible for business debts and liabilities. This is true whether it is taxed as a C corporation or an S corporation.