S-type corporations and limited liability companies are taxed like partnerships,but have the advantage of limited liability for their owners.

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S-type corporations and limited liability companies are pass-through entities, meaning they are not taxed at the entity level but instead their profits and losses are passed through to the individual owners' tax returns. This is similar to partnership taxation. Additionally, both S-corps and LLCs offer limited liability protection to their owners, which is a key advantage over sole proprietorships and general partnerships.

S-Type Corporations and Limited Liability Companies Are Taxed Like Partnerships,but