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How Would S Corporation Be Good For Bob's Company?

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After reading chapter two which was on the different kinds of organization forms that are available for business I think that S corporation would be good for Bob’s company. If Bob had to choose the S corporation to incorporate his business with the two investors he has he knows that would like to contribute in helping him to expand his business. The investors would be able to get a common or preferred stock in the amount of money that they gave Bob to make the changes to the company.
A few tax advantage Bob would have if he for turning his small business into a S corporation are that he would not have to pay for tax because the tax would be pass to the two shareholders. The shareholders’ marginal tax rates would be low with S corporation. Also
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