Which of the following entities is not considered a flow-through entity?
A)C corporation.
B)S corporation.
C)Limited liability company (LLC).
D)Partnership.

Question

Quizplus · Accepted Answer

A C corporation is not considered a flow-through entity because it pays taxes at the corporate level, and the shareholders must also pay taxes on any dividends received or capital gains on the sale of their stock. In contrast, S corporations, LLCs, and partnerships are considered flow-through entities because their profits and losses flow through to the owners' personal tax returns, and they are only taxed once at the individual level.

Which of the Following Entities Is Not Considered a Flow-Through