Question

which business structure/s has double taxation? *
sole proprietorship
partnership
llc
s - corp
c - corp

Explanation:

• Sole proprietorship: Income is taxed only at the individual level (no double taxation).
• Partnership: Profits are passed through to partners and taxed at individual level (no double taxation).
• LLC: By default, taxed as pass - through entity (no double taxation, though can elect C - Corp tax status).
• S - Corp: Pass - through entity, income taxed at shareholder level (no double taxation).
• C - Corp: The corporation is taxed on its profits, and then shareholders are taxed on dividends received (this is double taxation).

Answer:

C - Corp (the option with "C - Corp" text)