In which form of business organization is the taxation effects characterized by the income flowing to shareholders taxed at personal tax rates?
A) proprietorship
B) limited partnership
C) corporation
D) subchapter S corporation
E) general partnership

Question

Quizplus · Accepted Answer

A subchapter S corporation allows income to flow through to shareholders, who then report it on their personal tax returns, thus being taxed at personal tax rates.

In Which Form of Business Organization Is the Taxation Effects