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Tax return

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Discussion Question 1
Your friend, John and Kate, are starting a business together and have asked your opinion regarding whether they should form a partnership, a corporation, or some other type of entity. Prepare a bullet list of questions you would ask in helping them decide which type of entity is more appropriate.
When are C corporations required to make estimated tax payments? Discuss how these payments are scheduled? What happens if the payments do not cover the actual tax liability?

Discussion Question 2
There are times in which corporations with subsidiaries will be able to file a consolidated return. In doing so, they can eliminate any inter-company profits and losses on the principle that its tax liability should be based on transactions with outsiders. Taking this concept a step further, what are the main advantages and disadvantages of filing consolidated returns? Provide some examples of companies who file consolidated returns.

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Solution Summary

The document contains questions which can help one decide whether partnership or corporation is suited to them, and details advantages and disadvantages of consolidated tax return