Which of the following business organizational form(s) create(s) a tax liability on income at the personal income tax rate?
A) Sole proprietorship
B) Partnership
C) Corporation
D) Both A and B

Question

Quizplus · Accepted Answer

Both sole proprietorship and partnership are pass-through entities where profits and losses flow through to the owners' personal tax returns, and are taxed at the personal income tax rate.

Which of the Following Business Organizational Form(s) Create(s) a Tax