Double taxation is a problem for partnerships and corporations.

Name: Double taxation is a problem for partnerships and corporations.
Brand: Quizplus
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Quizplus · Accepted Answer

Double taxation is primarily a problem for corporations, not partnerships. Corporations face taxation at both the corporate level and again at the shareholder level when dividends are distributed. Partnerships, on the other hand, are typically pass-through entities, meaning income is taxed only at the individual partner level.

Double Taxation Is a Problem for Partnerships and Corporations