The legal entity which is taxed twice, once when revenue is earned and then again when the profits are distributed to the owners is known as ____.

Question

Quizplus · Accepted Answer

A "C" Corporation is the legal entity that is taxed twice, first at the corporate level when revenue is earned, and then again at the individual shareholder level when profits are distributed as dividends. Limited Liability Companies (B), Limited Partnerships (C), and Joint Ventures (D) are taxed only once at the individual level.

The Legal Entity Which Is Taxed Twice, Once When Revenue