In which legal structure for organizations can owners not avoid double taxation?
A) S corporation
B) partnership
C) corporation
D) LLC

Question

Quizplus · Accepted Answer

Only corporations are subject to double taxation, where both the corporation and shareholders are taxed on profits. S corporations, partnerships, and LLCs avoid double taxation by passing profits and losses through to the owners' personal tax returns. Therefore, if avoiding double taxation is a priority, the best choice would be an S corporation, partnership, or LLC.

In Which Legal Structure for Organizations Can Owners Not Avoid