Quote:
Originally Posted by itech4814
I am having some trouble distinguishing the different entities...
Which one protects the owner from the general obligations of the business?
Which entity only taxes the profits of the business one time?
Which one is available for businesses with a single owner?
Which one is required to file an annual tax return?
I was thinking...
1. LLC
2. C corporation
3. sole proprietorship
4. all of them
Is this correct?
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A sole proprietor remains liable for the GO of the business so this fails the first question.
A C Corp pays taxes at the corporate level and again after distributing to the owners so this fails the second question.
A corp pays quarterly taxes so it fails the last question.
A LLC has limited liability and is considered a disregarded tax entity so taxes are only assessed on the individual's return. Taxes are only filed annually as part of the individual's taxes. An LLC can be just a single owner. Therefore, I believe the answer is LLC.