All of the following statements are true except
A) 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.
B) the net income earned by a sole proprietorship is reported on the owner's individual income tax return.
C) LLCs are generally taxed as partnerships.
D) 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.

Question

Quizplus · Accepted Answer

S corporations are not subject to double taxation; their income is typically passed through to shareholders and taxed at the individual level, avoiding entity-level taxation.

All of the Following Statements Are True Except