Discussion Starter: Tax treatment under the Internal Revenue Code is often a primary consideration in choosing a form of organization. Business organizations are taxed either as partnerships or as corporations.To be "taxed as a partnership" means that the entity itself pays no income tax, only the owners of the organization pay tax on its earnings.C Corporations, on the other hand, pay federal income tax on their earnings and then shareholders also pay tax on any dividends. To be taxed as a corporation, then, is to be subject to double-taxation under the Internal Revenue Code

Question:To say that an organization is "taxed as a partnership" or "not a taxable entity" is simply a euphemism for saying that it is not taxed at all. Some commentators argue that organizations receive valuable privileges such as limited liabilityand should, in return, pay taxes. Do you agree?