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Which of the three organizational forms S corporation, C corporation, or partnership treats owners who work for the business in the following manner?

Which of the three organizational forms – S corporation, C corporation, or partnership – treats owners who work for the business in the following manner?

  1. The owner’s corporation compensation is a deductible business expense.
  2. The owner’s compensation is subject to FICA withholding.
  3. The employee benefits are deductible expenses.
  4. The employee benefits are excluded from the owner-employee’s gross income.

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The C corporation is the standard or default corporation under IRS rules The S corporation is a corporation that has elected a special tax status with ... blur-text-image

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