Which form of business faces double taxation?
A)Sole proprietorship
B)Partnership
C)Corporation
D)LLC

Question

Quizplus · Accepted Answer

Corporations face double taxation because they pay taxes on their profits and then shareholders who receive dividends from the corporation are also taxed on that income. Sole proprietorship and partnership only face single taxation and LLCs have the option to be taxed as a partnership or as a corporation, so they may or may not face double taxation.

Which Form of Business Faces Double Taxation