Match the term with the entity to which it applies.
-Separate entity that never pays income taxes
A)Sole Proprietorship.
B)Partnership.
C)Corporation.
D)S Corporation.

Question

Quizplus · Accepted Answer

Partnerships are considered "pass-through" entities for tax purposes, meaning the entity itself does not pay income taxes. Instead, profits and losses are passed through to the individual partners, who then report this income on their personal tax returns.

Match the Term with the Entity to Which It Applies