Business Structure from a Tax Perspective
Not what you're looking for?
We have elected the S corporation form of business. Now we are not sure this was the best business structure for us from a taxing perspective, and we would like a written comparison discussing the tax advantages and disadvantages of the C corporation, S corporation, and partnership forms of business. Also we would like a recommendation based on your findings, which we will use for future business considerations.
Attached are some information about the S-Corp.
Purchase this Solution
Solution Summary
This solution gives you a detailed discussion on Tax advantages
Solution Preview
We have elected the S corporation form of business. Now we are not sure this was the best business structure for us from a taxing perspective, and we would like a written comparison discussing the tax advantages and disadvantages of the C corporation, S corporation, and partnership forms of business. Also we would like a recommendation based on your findings, which we will use for future business considerations. This should be prepared on 3 pages.
There are several advantages that an S Corporation has. To begin with the company's losses can be passed on to its shareholders; the shareholder/owners can set off the losses against personal income and so reduce your tax burden. In addition, the S corporation can be used by the shareholder or owner to reduce self-employment tax and FICA tax. The profits of the shareholder are not taxed in this manner. So the S Corporation provides its shareholders with protection from double-taxation as well gives them the advantages of limited liability and the facility to raise capital more easily as a corporation. What the S Corporation does is that that it shows profits and losses as they pass through onto the shareholders. The S Corporation has the special benefit that the Corporation does not have to pay taxes separately. For the purpose of taxation S ...
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Basics of corporate finance
These questions will test you on your knowledge of finance.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.