Question

multiple choice question
what type of business structure is owned by shareholders and is taxed as a separate entity?
s corporation
limited partnership
limited liability company
c corporation

Explanation:

• S corporation: Pass - through taxation (income taxed at shareholder level, not as a separate entity).
• Limited partnership: Partners are taxed on their share of profits (not a separate - entity tax).
• Limited liability company (LLC): Usually pass - through taxation (unless elected to be taxed as a corporation).
• C corporation: Owned by shareholders and is a separate legal entity. It pays corporate income tax on its profits.

Answer:

C corporation