AC 750 Chapters 15 and 19

AC 750 Chapters 15 and 19 - Chapters 15 & 19 Business...

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Business Entities Corporate Formation Chapters 15 & 19
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2 Tax Entities  Individuals (including sole proprietors)  Partnerships (General, limited, Limited Liability    Partnership - L.L.P.)   Corporations (C or S)  Other businesses AC 750 - Chapters 15 & 19
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AC 750 - Chapters 15 & 19 3 Flow – Through (Pass- Through) Entities  Sole Proprietorship   Partnership (general, limited, LLP)   S - Corporation   LLC (Choice!)  Owner(s) pays tax when business earns profits     (even if  not distributed) Owner offsets other personal income with businesses losses  Owners are NOT  taxed when profits are distributed
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AC 750 - Chapters 15 & 19 4 C - Corporation C-Corporation: Taxed at the entity level when profit is earned  Losses are carried forward Taxed at the owner level when profits are distributed L    Double Taxation    J * Also includes LLC choosing to be taxed as a C - Corp
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AC 750 - Chapters 15 & 19 5 Other Businesses An organized entity (that is NOT incorporated), including limited liability  companies (LLC), may choose the type of entity it will be taxed as. Known  as “check-the-box” regulations (1997) Number of Choice of   Members        Taxable Entity      One Sole proprietor or Corporation Two or more   Partnership or  Corporation If “corporation” is chosen, S-Status can be elected
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6 Business Entities Summary Who is taxed on Business Profits/Losses? Owner(s) taxed on Distributions? Limited Liability?
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This note was uploaded on 03/19/2012 for the course ACC 750 taught by Professor Tracynoga during the Spring '12 term at Bentley.

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AC 750 Chapters 15 and 19 - Chapters 15 & 19 Business...

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