Business structure selector1 (1)

Business structure selector1 (1) - [Company Name] Business...

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1 of 2 11/28/2011 [Company Name] Business Structure Selector [Date] [Company Name] CONFIDENTIAL Gray cells will be calculated for you. You do not need to enter anything in them. Planned number of owners 2 Required protection from personal liability Low Net income for business $350,000 Owner's share of income $175,000 Salary received from business $50,000 Owner's other income subject to self-employment tax $25,000 Owner's marginal tax rate 28% State income tax rate on individual income 5.00% State income tax rate on business income 8.00% Sole Proprietorship Partnership Corporation S Corporation Option available? No Yes Yes Yes Yes If no, reason option not available Election to be treated as corporation? (Yes/No) Yes Business tax return required None Form 1065 Form 1120 Form 1120S Form 1120 Protection from personal liability Low Low High High High Estimated Tax Liability Caused by Business Salary from business N/A $50,000 $50,000 $50,000 $50,000 Business income currently taxable to owners
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This note was uploaded on 11/28/2011 for the course ACCT 5110 taught by Professor Jkn during the Spring '11 term at Punjab Engineering College.

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Business structure selector1 (1) - [Company Name] Business...

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