Question

what are the tax benefits of a partnership versus a corporation?

Answer 1

A partnership is subject to only a single level of taxation, while  corporation income is subject to double taxation. Corporate income is taxed at the entity level at rates upto 35% . Any after tax income that is distributed to corporate owners as a dividend is taxed at the owner level. Though partnership income may be subjected to high tax rates at the partner level, the resulting tax will be generally lower than a combined corporate level tax and a second tax on a dividend distribution.