Which of the following types of business organizations should pay business income tax?
A)S Corporation
B)sole proprietorship
C)general partnership
D)C Corporation

Question

Quizplus · Accepted Answer

C Corporations are the only type of business organization that pays federal income tax on their profits, in addition to any individual income tax paid by the owners/shareholders. The other options (S corporations, sole proprietorships, and general partnerships) are considered pass-through entities, meaning the business income is passed through to the owners' personal income tax returns and taxed at their individual tax rates.

Which of the Following Types of Business Organizations Should Pay