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.
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