Question

match the legal structure to its description.
s corporation
partnership
sole proprietorship
corporation
non - profit
limited liability company (llc)
a for - profit corporation with a lower tax rate that prevents the company from being double taxed
profits are taxed when earned, and then the shareholders’ dividends are taxed after they are distributed. this legal structure is best for international businesses
allows the owner to pay taxes on their profits or losses through their own taxes using a personal tax rate. this legal structure is ideal for a single owner seeking low risk
easy to create, but comes with unlimited liability
shared financial backing
has no ownership and pays no us federal taxes

Explanation:

1. The S corporation is a for-profit structure that avoids double taxation by passing income to shareholders who pay personal taxes on it.
2. C corporations face double taxation (corporate tax on profits, then shareholder tax on dividends) and are suited for international operations.
3. A sole proprietorship is simple to establish but exposes the owner to unlimited personal liability for business debts.
4. Partnerships involve multiple owners who share financial responsibility and backing for the business.
5. Non-profit entities do not have traditional ownership structures and are exempt from US federal income taxes.
6. LLCs let owners report business profits/losses on personal tax returns, offering low risk via limited liability.

Answer:

1. S corporation → A for-profit corporation with a lower tax rate that prevents the company from being double taxed
2. C corporation → Profits are taxed when earned, and then the shareholders' dividends are taxed after they are distributed. This legal structure is best for international businesses
3. Sole proprietorship → Easy to create, but comes with unlimited liability
4. Partnership → Shared financial backing
5. Non-profit → Has no ownership and pays no US Federal taxes
6. Limited liability company (LLC) → Allows the owner to pay taxes on their profits or losses through their own taxes using a personal tax rate. This legal structure is ideal for a single owner seeking low risk