What is the term for ownership structures where profits go straight to the owners and taxes are reported on each owner's individual tax return?
A) pass-through taxation
B) double taxation
C) corporate taxation
D) flat taxation

Question

Quizplus · Accepted Answer

Pass-through taxation refers to the type of ownership structure where profits are not taxed at the corporate level but are instead passed through to the owners' individual tax returns, avoiding double taxation. This type of structure is most commonly found in partnerships, LLCs, and S corporations.

What Is the Term for Ownership Structures Where Profits Go