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The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions are divided by the percentage of individual interest each partner has in the company. This is an example of a benefit enjoyed by which type of organization?

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User Itay Gal
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Answer: The Limited Liability Company enjoys this benefit.

Step-by-step explanation:

A Limited Liability Company is a hybrid organization that combines the features of a corporation with those of a partnership or sole proprietorship.

The credits and deductions of the company are passed through to partners to file on their individual tax returns.

Credits and deductions are divided by the percentage of individual interest each partner has in the company.

Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses are “passed through” the business to each member. LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would.

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User Robb
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