Acct 412 gdb3 reply

Acct 412 gdb3 reply - Corporations, 2011). The corporation...

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28 th July 2011 Module 5, Group 3, GDB3 Reply RE: Question 1: Explain the tax benefits and the detriments of an S corporation. Miranda has cited many advantages to having an S corporation. The avoidance of being taxed twice for the same income, having liability reduced gives corporations more of an operating advantage. In addition to these advantages, “S Corporations [,] without any inventory [,] can use the cash method of accounting” instead of the accrual method (The Pros and Cons of S Corporations, 2011). Miranda has cited many of the disadvantages as well to having an S corporation. Along with the disadvantages she has cited there are numbers more disadvantages. For instance, the corporation must comply with federal and state regulations rules. The corporations must have the “Articles of Incorporation and corporate minutes” recorded and on file (The Pros and Cons of S
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Unformatted text preview: Corporations, 2011). The corporation is also required to make salary payments even if the corporation still has not began making money. In addition, the S corporation can only have 100 shareholders at any given time. The term members of the family can extend to former spouses of shareholders (Willis, Hoffman, Maloney, & Raabe, 2010). Reference: The Pros and Cons of S Corporations . (2011, 06 30). Retrieved 07 28, 2011, from All Business: http://www.allbusiness.com/business-planning/business-structures-corporations/2516-1.html Willis, E., Hoffman, J. W., Maloney, D. M., & Raabe, W. A. (2010). South-Western Federal Taxation Comprehensive Volume 33rd Ed. Mason, OH: South-Western Cengage Learning....
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Acct 412 gdb3 reply - Corporations, 2011). The corporation...

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