BUL Notes [3588].docx - Subchapter S corporations cannot...

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Subchapter S corporations cannot have more than thirty-five shareholders, each of whom must sign the election to be taxed in a manner similar to a partnership. (cannot exceed 100 shares)
Which of the following is NOT one of the recognized disadvantages of doing business as a corporation? A corporation can be in existence for a maximum of 99 years By statute, a limited partnership must have a minimum of ____________limited partners.
General----------------limited Corporations are said to have a burden of "double tax" because
Subchapter S corporations are limited to _________shareholders.
In a Limited Liability Company, the losses and profits pass through to the shareholders. A partnership is a taxable entity.
Investors favor using Limited Partnerships to invest in commercial real estate because
they can use the depreciation of the property as a tax loss.
A limited partnership has to have at least two general partners and at least one limited partner false A partner who participates in the management of the partnership, but whose existence is not known to the public is a _____________ partner. Which of the following decisions would require a unanimous vote of the partners?
If a partnership agreement does not say how losses will be shared, they will be shared In whatever way the profits are shared. Bob and Sue, who are both attorneys, agreed to share office space and other overhead expenses in order to save money. They did not agree to form a partnership. They do not share profits or losses and neither has a say in the management of the other's business. The sign outside their door, and on their common letterhead, reads: "Bob Smith and Sue Jones, Attorneys at Law." Using this stationary, Bob purchased office equipment from Smart Buy. Sue at no time used the equipment and did not enter into the contract
with Smart Buy. Bob did not pay for the equipment and Smart Buy wants to hold Sue liable. Is Sue liable as a partner for this purchase?

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