Question

Hudson and Ilsa want to market a new line of kayaks and related gear under the brand name Journeys as a corporation (Journeys Inc). To avoid income taxes at the corporate level, they should form:

Answer 1

Answer:

S Corporation

Explanation:

Based on the information provided within the question it can be said that Hudson and Ilsa may want to consider forming an S Corporation. This is an normal business corporation in which all corporate income, losses, deductions, are passed to the shareholders which deal with the federal taxes. Therefore Hudson and Ilsa would avoid income taxes