Income tax liabilities may differ for each form of business organization selected.

Question

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Each form of business organization has different tax structures and liabilities. For example, sole proprietorship and partnership entities are pass-through entities where income is taxed only once on the owner's personal income tax return, whereas corporations are taxed at both the corporate and individual levels. Therefore, income tax liabilities may differ for each form of business organization.

Income Tax Liabilities May Differ for Each Form of Business