A corporation is managed by the officers and the board of directors, the directors being elected by the shareholders, and the officers being appointed by the directors. There is no taxable entity. The sole proprietor pays taxes in the form of income taxes. Partners pay taxes on their share of the income and deduct losses against other sources of income Can elect taxation method. For example, can be taxed as a corporation or can elect to have no company tax liability.
Corporation has no tax liability.
Taxes are paid on an individual income tax level by the shareholders when profits are passed in the form of dividends. Taxation Method Income tax on proprietor. Income tax on partner's share of partnership income. Can elect taxation method. Generally no tax at the company level.