Name two differences between a partnership and a corporation regarding liability and taxation.

Name two differences between a partnership and a corporation regarding liability and taxation.

• A. Partnerships have limited liability and double taxation; corporations have unlimited liability and pass-through taxation.
• B. Partnerships have unlimited liability and pass-through taxation; corporations offer limited liability and no taxation.
• C. Partnerships have unlimited liability and pass-through taxation; corporations have limited liability and potential double taxation (unless S corp).
• D. Partnerships have no liability; corporations have unlimited liability and no taxation.

Answer: (C)