Sole proprietorships, partnerships, S-corporations, and limited liability companies all permit pass-through earnings and losses, but S-corporations and LLCs offer more protection from liability.

Question

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Sole proprietorships and partnerships offer pass-through taxation but do not provide personal liability protection. S-corporations and LLCs also allow for pass-through taxation and offer the added benefit of protecting owners from personal liability for business debts and obligations.

Sole Proprietorships, Partnerships, S-Corporations, and Limited Liability Companies All Permit