- Sole Proprietorship- Business income & expenses are reported on the owner’s personal return. Reported in Form 1040.
- Partnership- Partnerships does not pay taxes. It files an Information return in Form 1065 to report income & expenses while each partner receives a Schedule K-1 to report their profits & losses in their Individual tax return.
- C Corp- C Corpsare subject to corporate income tax in Form 1120.
- S Corp- Shareholders are taxed on dividends & distributions they receive from Corporation. It is similar to taxation of partnerships where they are not taxed at corporate level.
