Questions: 7. No company tax. The owners of this organization each pay taxes on the profits they receive but do not pay taxes directly. 8. This organization's profits are taxed on the company level and again when the dividends are passed on to are in essence paying taxes twice on the same income. 9. personal taxation only. This organization is taxed exactly like a partnership, with owners paying only personal taxes at the normal

7. No company tax. The owners of this organization each pay taxes on the profits they receive but do not pay taxes directly.
8. This organization's profits are taxed on the company level and again when the dividends are passed on to are in essence paying taxes twice on the same income.
9. personal taxation only. This organization is taxed exactly like a partnership, with owners paying only personal taxes at the normal
Transcript text: 7. No company tax. The owners of this organization each pay taxes on the profits they receive but do not pay taxes directly. 8. This organization's profits are taxed on the company level and again when the dividends are passed on to are in essence paying taxes twice on the same income. 9. personal taxation only. This organization is taxed exactly like a partnership, with owners paying only personal taxes at the normal
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Solution

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The question appears to be about different types of business organizations and their tax implications. Let's address each part:

  1. The description given is for a business structure where the company itself does not pay taxes, but the owners pay taxes on the profits they receive. This is characteristic of a "Partnership." In a partnership, the business itself is not taxed at the company level. Instead, profits are passed through to the partners, who then report the income on their personal tax returns.

  2. The description here refers to a situation where the organization's profits are taxed at the company level and again when dividends are distributed to shareholders, resulting in double taxation. This is typical of a "Corporation." In a corporation, the company pays corporate taxes on its profits, and shareholders also pay taxes on dividends they receive, leading to double taxation.

  3. The description here matches an "S corporation" or an "LLC" (Limited Liability Company) that is taxed like a partnership. In these structures, the organization itself is not taxed. Instead, income is passed through to the owners, who pay personal taxes on their share of the profits. Both S corporations and LLCs can be structured to avoid double taxation, with income taxed only at the individual level.

In summary:

  • The answer to question 7 is "Partnership."
  • The answer to question 8 is "Corporation."
  • The answer to question 9 is "S corporation" or "LLC."
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