Response for A C-Corporation

For the advantages of different types of business structure, I believe the sole proprietorship would give someone more control over the business decisions, which would be reflected in taxes such as assets purchased, and employees hired. However, this also means only a sole person responsible for the liability of the company including the taxes owed. So as a sole proprietor they would report income or losses of business on their personal tax return (Pope et al., 2019). For a partnership this can be two or more individuals and is a tax reporting but not a tax paying entity. Each partner must file and when the company return is filed each partner get a statement of their part of the income or loss that they must report on their personal tax return. An advantage is the company pays no taxes and the partners shoulder that burden on their personal tax return. This could also be a disadvantage if a partner’s personal tax rate is higher than it would be for the company.
A C- corporation is a separate entity that is taxed on its own income on a yearly basis. The advantage to this is the company is taxed separately, however this can also be the disadvantage as when distributing earnings as the owners or shareholders as then taxed again on those earnings. This is seen as double taxation. There are some extra protections in an S corporation with it being treated as a pass thru for the income, however, to become an S corporation status this must be approved by stockholders as income and losses would be reported on their personal returns.
When thinking of a gas station I believe with the revenues, with pricing today, I believe a corporation is the best as it is important for the company to pay its own taxes as there is many with fuel and other things sold at a fuel station. I believe another key part is that there are many or a chain of stations, so with more expansion possible it is possible that a corporation will reinvest profits rather than pay out to ownership.