Which of the following is NOT a listed S-Corporation benefit?

• A. Owners don't have personal liability for the debts and other liabilities
• B. No corporate or double taxation
• C. More expensive to create
• D. No restrictions on eligibility

Answer: (C)

The main idea is that S-Corporation benefits center on liability protection and tax treatment. Owners enjoy limited personal liability for debts, and profits pass through to shareholders without paying corporate income tax at the entity level. The statement about being more expensive to create is not a benefit—it describes a cost or drawback of forming an S-Corp, not an advantage. While S-Corps do offer liability protection and pass-through taxation, there are also eligibility rules to be aware of (so the notion of “no restrictions on eligibility” isn’t accurate). The key takeaway is that the only item that isn’t a benefit listed for S-Corps is the higher creation cost.