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Posted: March 24th, 2022
BL-8
QUESTION 12
One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation? Your response must be at least 75 words in length.
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12TH QUESTION
Double taxation, which occurs when a corporation distributes dividends to shareholders from profits that have already been taxed and the dividends are taxed twice when received by shareholders, is one of the disadvantages of the corporate form of doing business. How does the use of a subchapter S corporation address the issue of double taxation? Your response must be at least 75 words in length.
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