Double taxation, which occurs when profits are taxed at both the corporate and individual rates, is a drawback of the corporate form of ownership.
What is corporate form?
- By setting up a company in corporate form, a firm can operate independently of its owners. And in many states, a corporation with a corporate form of business may be run by one or more people.
- The double taxation of distribution revenues and dividends to shareholders is the main drawback of the corporation form. Limited liability, ease of transferability, the capacity to raise capital, limitless life, and other benefits are just a few.
- This article is for business owners who are attempting to decide on their corporate structure and whether it is advantageous for them to do so.
To learn more about corporate form refer to:
https://brainly.com/question/1167298
#SPJ4
