Compare the Basic Tax and Nontax Factors of Doing Business

Essay

Compare the basic tax and nontax factors of doing business as a partnership,an S corporation,and a C corporation.Circle the correct answers. ​ ​ Tax Questions ​ Column A Partnership Column B S Corporation Column C C Corporation Who pays tax on the entity's income? ​ Partners Partnership ​ Shareholders S corporation Shareholders C Corporation Are operating losses passed through to owners? ​ Yes No Yes No Yes No Are capital gains (losses) reported on owners' tax returns as such? ​ Yes No Yes No Yes No Are distributions of profits taxable to owners? Yes No Yes No Yes No ​ ​ ​ ​ Nontax Factors Partnership S Corporation C Corporation ​ Is the liability of owners limited? Yes No ​ Yes No Yes No Is there free transferability of ownership interests? Yes No Yes No Yes No ​