A sole proprietorship,a partnership,and a corporation may all be subject to double taxation,depending on the circumstances.

Question

Quizplus · Accepted Answer

A sole proprietorship and a partnership are not subject to double taxation. Only the income of corporations can be taxed twice: first at the corporate level and then at the shareholder level when profits are distributed as dividends. Sole proprietorships and partnerships pass their profits directly to their owners, who then report the income on their personal tax returns, avoiding double taxation.

A Sole Proprietorship,a Partnership,and a Corporation May All Be Subject