Which of the following forms of business always imposes double taxation on the earnings of the business?
A)A corporation
B)A limited liability company
C)A limited liability partnership
D)A sole proprietorship

Question

Quizplus · Accepted Answer

Only when the corporation distributes its profits to the shareholders in the form of dividends or the shareholders sell their investments at a profit do the shareholders report income on their individual returns.This creates a double-tax possibility,as profits are taxed once at the corporation level and again at the shareholder level when dividends are paid.

Which of the Following Forms of Business Always Imposes Double