Assume You Plan to Start a New Enterprise; You Know

question 66

Multiple Choice

Assume you plan to start a new enterprise; you know the probability of having losses for the first three years of operations is almost 90 percent, and you know you will report a substantial amount of income from other sources during those same three years. From a tax perspective, which of the following entity choices would be least favorable?

• A) General partnership.
• B) S corporation.
• C) LLC.
• D) C corporation.