All of the following statements are true except
A)the net income earned by a sole proprietorship is reported on the owner's individual income tax return.
B)the net income of an S corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the S corporation to individual shareholders are also taxed.
C)the net income of C corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the C corporation to individual shareholders is also taxed.
D)LLCs are generally taxed as partnerships.

Question

Quizplus · Accepted Answer

All of the other statements are true: net income of a sole proprietorship is reported on the owner's individual income tax return, net income of a C corporation is subject to double taxation, and LLCs are generally taxed as partnerships. However, the net income of an S corporation is not subject to double taxation because it is not taxed at the entity level, only at the individual shareholder level.

All of the Following Statements Are True Except