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

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online