rhombus6 C corporation reports its income and expenses and computes tax on the

Rhombus6 c corporation reports its income and

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rhombus6 C corporation reports its income and expenses and computes tax on the taxable income reported on its Form 1120 rhombus6 When corporation distributes its income, the corporation’s shareholders report dividend income on their own tax returns pentastar2 Thus, income that has already been taxed at the corporate level is also taxed at the shareholder level
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Limited Liability Companies (LLC) square6 LLCs have proliferated since 1988 when IRS ruled it would treat qualifying LLCs as partnerships rhombus6 Major nontax advantage Allows owners to avoid unlimited liability pentastar2 rhombus6 Major tax advantage pentastar2 Allows qualifying business to be treated as a partnership for tax purposes, thereby avoiding double taxation associated with C corporations
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Check-the-box Regulations square6 Allows taxpayer to choose tax status of entity without regard to corporate or noncorporate characteristics square6 Entities with > 1 owner can elect to be classified as partnership or corporation square6 Entities with only 1 owner can elect to be classified as sole proprietorship or as corporation square6 If no election is made, multi-owner entities treated as partnerships, single person businesses treated as sole proprietorships square6 Election is not available to: rhombus6 Entities incorporated under state law, or rhombus6 Entities required to be corporations under federal law (e.g., certain publicly traded partnerships)
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  • Fall '14
  • fabioambrosio
  • Accounting, Corporation, Limited Liability Company, C CORPORATION

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