Corporate and Partnership Tax
Corporate and Partnership Tax
Lee – Fall 2013
By: Cullen G. Tatum
TEST INFO:
• The test will be a take home test that will have to be returned by the original assigned test date.
• Interested in comparing between different types of entities.
• One question will be some individuals who want to form an entity, and you should choose one and elaborate.
• You should treat the test as if you were responding in memo form to an attny who already knows some info on the subject so you do not need to cite the code and provide the entire quoted section of the corporation.
• Another question might be a fact scenario that asks for your recommendation on the best business format with the advantages and disadvantages.
• There will mostly be around Five questions.
• Will continue to update the class about the test as he continues to make it.
Chapter 1: Perspective *Get Solution Book on Reserve in Library
A. The Business as an Entity Under State Law
• A partnership exists when two or more individuals engage collectively in an activity with the expectation of generating profits. (Subchapter K)
• Any partner may dissolve the partnership at any time and depart with their share of the assets of the enterprise
• To create a corporation, owner(s) must follow specific state laws requirements for creating that entity. Once created, all assets are transferred to the corporation.
• LLC – like a corporation, but more flexible. Members are exposed to obligations of the enterprise only to the extent of their investment.
• Corporations are identified by tax law as “C Corporations” (governed by Subchapter C)
• Most state law partnerships and LLCs are treated simply as accounting entities.
• The income of an enterprise taxed as a partnership is computed by the enterprise but such income is taxed directly to the individual owners.
• Certain corporations may be treated as accounting entities or “S Corporations” (governed by Subchapter S)
• Get Taxes from Statute Book
Lee – Fall 2013
By: Cullen G. Tatum
TEST INFO:
• The test will be a take home test that will have to be returned by the original assigned test date.
• Interested in comparing between different types of entities.
• One question will be some individuals who want to form an entity, and you should choose one and elaborate.
• You should treat the test as if you were responding in memo form to an attny who already knows some info on the subject so you do not need to cite the code and provide the entire quoted section of the corporation.
• Another question might be a fact scenario that asks for your recommendation on the best business format with the advantages and disadvantages.
• There will mostly be around Five questions.
• Will continue to update the class about the test as he continues to make it.
Chapter 1: Perspective *Get Solution Book on Reserve in Library
A. The Business as an Entity Under State Law
• A partnership exists when two or more individuals engage collectively in an activity with the expectation of generating profits. (Subchapter K)
• Any partner may dissolve the partnership at any time and depart with their share of the assets of the enterprise
• To create a corporation, owner(s) must follow specific state laws requirements for creating that entity. Once created, all assets are transferred to the corporation.
• LLC – like a corporation, but more flexible. Members are exposed to obligations of the enterprise only to the extent of their investment.
• Corporations are identified by tax law as “C Corporations” (governed by Subchapter C)
• Most state law partnerships and LLCs are treated simply as accounting entities.
• The income of an enterprise taxed as a partnership is computed by the enterprise but such income is taxed directly to the individual owners.
• Certain corporations may be treated as accounting entities or “S Corporations” (governed by Subchapter S)
• Get Taxes from Statute Book