The choice of ownership form for pooled equity investments depends heavily on federal tax considerations. Which of the following ownership structures suffers from the major disadvantage of double taxation?

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A C Corporation suffers from the major disadvantage of double taxation, where the corporation's profits are taxed at the corporate level and again when distributed to shareholders as dividends. Subchapter S Corporations, General Partnerships, and Limited Liability Companies do not have this disadvantage as their profits are passed through to the owners and taxed only at the individual level.

The Choice of Ownership Form for Pooled Equity Investments Depends