Final answer:
A C Corporation is not a flow-through entity as it is subjected to corporate taxation, and any dividends are taxed again at the individual shareholder’s level. In contrast, an S Corporation, General Partnership, and LLC are all flow-through entities where income passes to owners and is taxed on personal tax returns.
Step-by-step explanation:
The question asks which of the following is NOT a flow-through entity: S Corporation, General Partnership, Limited Liability Company (LLC), or C Corporation. A flow-through entity is a legal business entity that passes income on to the owners and/or investors, and as such, the income is taxed on their individual tax returns. An S Corporation, General Partnership, and Limited Liability Company (LLC) are all examples of flow-through entities. In contrast, a C Corporation is not a flow-through entity. Instead, it is taxed at the corporate level, and then any dividends paid to shareholders are taxed again on their personal income tax returns. This is known as double taxation.