2010_CCH_Essentials_Chapter_15

Partner chapter 15 cch essentials of federal income

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Unformatted text preview: in computing ordinary income but separately stated for each partner. Chapter 15 CCH Essentials of Federal Income Taxation 6 of 14 Limited Liability Company Limited liability companies (LLCs) provide the owners with the limited personal liability of a corporation but are partnerships for tax purposes. The reason they receive partnership tax treatment is that they tend to lack the corporate characteristics of continuity of life and free transferability of interests. and Chapter 15 CCH Essentials of Federal Income Taxation 7 of 14 S Corporation To be an S corporation, the entity must have small business corporation status, which involves: • • • • Being a domestic corporation Having only one class of stock outstanding Having no more than 100 shareholders Limiting its shareholders to individuals (other than Limiting nonresident aliens), estates, and certain trusts nonresident Chapter 15 CCH Essentials of Federal Income Taxation 8 of 14 Electing S Status • • • In order to be taxed as an S corporation, all...
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This note was uploaded on 12/02/2010 for the course ECAC 330 taught by Professor Richardcole during the Spring '10 term at UMBC.

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