From a taxation perspective, the form of business organization with the highest business level taxes is the __________.
A) Sole proprietorship
B) Corporation
C) Partnership
D) S Corporation

Question

Quizplus · Accepted Answer

Corporations are subject to higher business level taxes than other forms of business organization, as they are taxed on their profits at the corporate tax rate, which can be up to 21% in the United States. Additionally, dividends paid to shareholders are also subject to taxes at the individual level, resulting in double taxation. Other forms of business organization, such as sole proprietorships and partnerships, are not subject to separate business level taxes, but instead pass through profits and losses to the owners to be taxed at the individual level. S corporations also pass through profits and losses to the owners, but are subject to certain limitations and restrictions on eligibility.

From a Taxation Perspective, the Form of Business Organization with the Highest