Question

multiple choice 2 points
an independent legal entity owned by its shareholders. a c corporations profit is taxed twice - as business income at the entity level and the
multiple choice 2 points
better for smaller corporations, corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.
s corporation
llc
sole proprietorships
c corporation
s corporation
llc
sole proprietorships
c corporation

Explanation:

1. A C - corporation is an independent legal entity owned by shareholders and has double - taxation on its profit (taxed at the entity level and then at the shareholder level when dividends are distributed).
2. An S - corporation allows for pass - through taxation where corporate income, losses, deductions, and credits pass through to shareholders for federal tax purposes.

Answer:

For the first question: C. C corporation
For the second question: D. S corporation