Louisiana State University, Shreveport ACCOUNTING ACCOUNTING 3124 Each type of business entity is affected by taxation. However, tax…

Each type of business entity is affected by taxation. However, tax rates vary among the many different types of company structures, such as traditional C corporations, S Corporations, partnerships, and LLC. For example, corporations are generally taxed at higher tax rates than sole proprietors.

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Explain the differences in taxing of four different types of organizations.
If you were going into business and had a choice of business structures to select from that would minimize your taxes, while yielding the highest profits, which would you choose and why?

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