Answer:
B. S-corporation
Explanation:
An S corporation is a small business corporation whose shareholders elect to register and operate as a corporation, but be taxed as a sole proprietorship or a partnership. An S corporation is allowed to pass corporate deductions, income, and losses through to the shareholders in tax calculation.
The income of an S corporation will be regarded as the income of shareholders. As such, once the S corporation pays corporate income tax, shareholders will not be expected to pay further income tax from their gains in the business. An s corporation, therefore, protects the shareholders from double taxation.
