three forms of business organization quick check\nhow does the taxation of a corporation differ from that of…

three forms of business organization quick check\nhow does the taxation of a corporation differ from that of a sole proprietorship and partnership? (1 point)\nthe earnings of shareholders are taxed directly.\nthe corporation pays no tax.\ntaxes are said to pass through the corporation and onto owners.\nthe corporation is taxed, and then shareholders are additionally taxed.

three forms of business organization quick check\nhow does the taxation of a corporation differ from that of a sole proprietorship and partnership? (1 point)\nthe earnings of shareholders are taxed directly.\nthe corporation pays no tax.\ntaxes are said to pass through the corporation and onto owners.\nthe corporation is taxed, and then shareholders are additionally taxed.

Answer

Brief Explanations:

  • Sole - proprietorships and partnerships have pass - through taxation. The business's income is reported on the owner(s)'s personal tax returns.
  • Corporations, on the other hand, are subject to double - taxation. The corporation pays taxes on its profits at the corporate level. Then, when dividends are distributed to shareholders, the shareholders pay taxes on that dividend income at their individual tax rates.

Answer:

The corporation is taxed, and then shareholders are additionally taxed.