In your own words, explain what is meant by the phrase, “C corporation income is subject to double taxation.” Specifically, when is the first tax paid, and by what entity? 

What event(s) typically trigger the second level of tax to be paid and by what entity? 

In your own words, explain what is meant by the phrase, “flow-through entity income is taxed once.” Specifically, when is the tax paid, and by what entity?

One of your neighbors said he personally does not need to worry about paying taxes on the business income generated by his flow-through entity this year because he has never received any distributions (cash or otherwise) from the entity. Explain why you agree or do not agree with this perspective.