Which of the following are subject to double taxation?
A)Corporation
B)Partnership
C)Sole proprietorship
D)A and B

Question

Quizplus · Accepted Answer

Corporations are subject to double taxation as they are separate legal entities from their owners, and are taxed both at the corporate income tax rate and at the individual income tax rate when profits are distributed to shareholders as dividends. Partnerships and sole proprietorships are not subject to double taxation as they do not have separate legal entities from their owners and are only taxed at the individual income tax rate.

Which of the Following Are Subject to Double Taxation