Zach Inherited a Large Amount of Money from His Uncle

question 23

Multiple Choice

Zach inherited a large amount of money from his uncle. Zach wishes to start a business with his college friend, and his lawyers encourage him to make it a corporation. What is the advantage of forming a corporation instead of a partnership?

• A) limited liability
• B) ease of start-up and administration
• C) pass-through taxation
• D) double taxation