Question

Rashida and Chintan were so excited about opening and incorporating their business that they forgot to get advice on the tax implications of their business ownership structure. As they get ready to pay their first round of taxes, they realize they will face double-level taxation. What tax structure did they choose?(1 point)
Responses

C corporation
C corporation

Sole proprietorship
Sole proprietorship

S corporation
S corporation

Partnership
Partnership

Answer 1

C corporation — C corporations face double taxation: corporate profits are taxed at the company level and dividends are taxed again at the shareholder level.