Double taxation

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A primary disadvantage of choosing to establish your business as a Corporation (also known as the classic “C” Corporation) is “double taxation.” This technically means that Select one:

a. Corporations always pay both a federal and a state tax

b. the Corporation pays a tax, and then owners may pay another tax when dividends are distributed to them

c. dividend distributions are never taxed, but the Corporation must pay twice as a result

d. dividend distributions are subject to tax at a rate twice as high as normal income

Reference no: EM131580887

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