Instructor%20Notes%20-%20Corporate%20Income%20Tax -...

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Corporate Income Tax C Corporations Formed by business associates to conduct a business venture and divide profits among investors. Files a charter or articles of incorporation in a state, in a US possession or with the US government. Prepares by-laws, has its business affairs overseen by a board of directors and issues stock C Corporations are subject to the toughest tax bite. Earnings are “double taxed” Once for Corporate Income Tax Taxed again as a dividend to investor when distributed Files Form 1120 annually – due 2 ½ months after year end Calendar year would be due March 15 th . April 30 th year end would be due July 15 th . Can have unlimited number of shareholders. Can have multiple classes of stock. More paperwork involved with C Corporation than Sole Proprietor. Advantages Life of business is perpetual (forever, essentially, unless it is dissolved). Stockholders have limited liability.
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Instructor%20Notes%20-%20Corporate%20Income%20Tax -...

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