Each type of business entity is affected by taxation. However, tax rates vary among the many different types of company structures, such as traditional C corporations, S Corporations, partnerships, and LLC. For example, corporations are generally taxed at higher tax rates than sole proprietors.

 

Respond to the following in a minimum of 450 words: 

 

  • Explain the differences in taxing of four different types of organizations. (200 words)
  • If you were going into business and had a choice of business structures to select from that would minimize your taxes, while yielding the highest profits, which would you choose and why? (250 words)

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