Partnerships and proprietorships generally have a tax advantage over corporations.

Question

Quizplus · Accepted Answer

Partnerships and proprietorships are not taxed as separate entities. Instead, the income generated by the business is passed through to the owners, who report it on their personal tax returns. This can result in a lower tax rate than corporations, which are taxed at the corporate level and then again on dividends paid to shareholders.

Partnerships and Proprietorships Generally Have a Tax Advantage Over Corporations