What are the differences in taxation of the four different types of organizations?

Different business structures operate in a given nation's economy. Based on various aspects and considerations entrepreneurs and investors make a decision on which business structure to adopt. The different business structures are limited liability companies, sole proprietorship, corporations, and partnerships. Each business structure attracts a different taxation system. In a sole proprietorship structure, personal and business taxes are legally considered the same. This is because the gains of a sole proprietorship business are the owner's income. The schedule C and Form 1040 forms are filled in this structure. In a partnership structure, partners are required to file a return of their business income as well as taxes on their personal share of losses or profits. In a limited liability company structure, several jurisdictions require additional state taxes. In this structure, partners file their personal returns. The personal tax form or Form 8832 is filed in this structure. In a corporation structure, some are required to pay state, federal and at times local taxes. Profits in this structure are also subject to tax. Taxes are imposed on both the profits gained by the corporations and the dividends paid to stakeholders.