An important factor to consider when determining how to organize a business is that:
A)members of an LLC have unlimited liability and are taxed like members of a partnership.
B)for accounting purposes,a proprietorship is a distinct entity,separate from the proprietor.
C)partnerships are subject to double taxation.
D)a corporation is not legally distinct from its owners.

Question

Quizplus · Accepted Answer

The fact that a proprietorship is a distinct entity, separate from the proprietor, means that it has its own accounting records and can be taxed separately from the owner. This can have implications for financial reporting and tax planning.

Other answer options are incorrect or incomplete: 
A is incorrect because LLC members have limited liability and are not taxed like members of a partnership. 
C is incorrect because partnerships are not subject to double taxation; instead, the business income is allocated to each partner and taxed at their individual tax rates. 
D is incorrect because a corporation is legally distinct from its owners, which provides limited liability protection for shareholders.

An Important Factor to Consider When Determining How to Organize