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    Types of business entities and how they are taxed

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    Discuss the different types of taxes. These types of taxes affect individuals and businesses.

    Keeping in mind how each business entity is taxed; what are the different types of business entities a taxpayer can choose?

    Explain the advantages and disadvantages of each type of business entity. Also, identify how a limited liability company is treated.

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    There are sole proprietorships; these have the lowest amount of legal rules. In a proprietorship, the owner assumes all responsibility for operations/ finances his personal assets may be taken if sued. These are taxed as business income on individual tax returns.

    "C" corporations are separate owners. These give shareholders the most liability protection and space from contracts and debts. Profits for a C ...

    Solution Summary

    The types of business entities and how they are taxed are determined.