In which of the following organizational forms are the owners not taxed on the business profits?

Question

Quizplus · Accepted Answer

In a corporation, the owners (shareholders) are not taxed on the business profits. Instead, the corporation pays corporate taxes on its profits and the shareholders pay taxes on any dividends they receive. Sole proprietorships and partnerships are both pass-through entities, meaning the owners are personally taxed on the business profits. Public partnerships are not a recognized organizational form, so they are not a valid choice.

In Which of the Following Organizational Forms Are the Owners