Explain how the income of each type of business entity is taxed, specifying whether the entity, the owner, or both, are taxed.
• Analyze the advantages and disadvantages of each entity in this context.
• What are the income tax implications for each type of business?How is the income of the business and its owners taxed?
• Analyze the advantages and disadvantages inherent in each of the fourbusiness forms with regard to taxation of income.
• Sole proprietorship.
• General partnership.
• Corporation.
• Limited liability company (LLC).