Felicia is starting an e-commerce business. She is deciding which entity to use for the business. All of the following are true related to entity characteristics, except: You don't necessarily have to create an entity to operate a business. Cash taken out of partnerships/S-Corps by owners is generally not taxable. Partnerships and S Corporations, generally, do not pay entity level income taxes C Corporations pay an entity level tax and any dividends to shareholders are not taxable