Which of the following does NOT have the advantage of single

Which of the following does NOT have the advantage of single taxation?

Sole proprietorships

Partnerships

Corporations

LLCs

Solution

The owner of a sole proprietorship is not required to file a separate business tax report. Instead, they will list business information and figures within their individual tax return. This can save additional costs on accounting and tax filing. The business will be taxed at the rates applied to personal income, not corporate tax rates.

A single-member LLC does not pay business tax at the federal level, and in most states, there is no business tax for single-member LLCs.

Losses are fully deductible for a corporation, whereas an individual running a sole proprietorship must prove there was a profit motive before deducting losses.