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liquidation with "S" and "C" Corporation

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If you are looking at tax issues relating to a liquidation, is it better to be an S corporation or a C corporation? Describe the pros and cons of each.

Please include the reference pages. Many thanks.

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This explanation provides you a comprehensive argument relating to liquidation with "S" and "C" corporation. Additionally, this solution includes two references for further research on the topic.

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If you are looking at tax issues relating to liquidation, is it better to be an S corporation or a C corporation? Describe the pros and cons of each.

It is better to be an S corporation. The reason is that in case of a C Corporation if there is liquidation there will be double taxation to the shareholders is there is any taxable gain. On the other hand if there is a loss, these stay in the corporation and cannot be passed through to the shareholders.

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Hatim Baxamusa, MBA
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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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