A Major Disadvantage of Partnerships Is That They Have Double

question 18

True/False

A major disadvantage of partnerships is that they have double taxation of profits.

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Definitions:

Wages Payable

A liability account that records the amounts owed to employees for work performed but not yet paid.

Liability

refers to any type of financial commitment or obligation that an entity is responsible for, such as debts and legal responsibilities.

Employer Identification Number

A unique nine-digit number assigned by the IRS for identification of businesses in the United States for tax purposes.

Monthly Depositor

A business classified as a monthly depositor will make its payroll tax deposits only once each month for the amount of Form 941 taxes due from the prior month.