Match the entity with the statement that describes the tax treatment of that entity.
A. Sole proprietorship
B. Partnership
C. C corporation
1. Entity reports income on tax forms separate tax (information) forms, but the profit or loss flows through to owners' individual income tax returns.
2. Income is taxed at the entity level rather than flowing through to the owner(s).
3. Revenues and expenses are reported directly on the owner's tax return and the profit (or loss) is subject to both individual income and self employment taxes.
