Because the taxes of business are filed with the personal tax return of the individual owning the business, it is called a double taxation

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Double taxation typically refers to the taxation of the same income or financial transaction at two different levels, such as when corporate income is taxed both at the corporate level and again at the shareholder level when dividends are distributed. In the scenario described, the business's taxes being filed with the personal tax return of the individual (common in sole proprietorships and some partnerships) does not constitute double taxation; it's a pass-through taxation mechanism where the business income is taxed once at the individual's personal tax rate.

Because the Taxes of Business Are Filed with the Personal