文档介绍：Chapter 16
Corporations
Learning Objectives
Define a corporation
Calculate the corporate e tax liability and explain specific tax rules
Apply the non-recognition of gain or loss rules for corporate formations
Learning Objectives
Understand the significance of earnings and profits
Determine the consequences of distributions and stock redemptions
Understand the consequences of a corporate liquidation to shareholders and the liquidating corporation
How A Business May anized
Sole Proprietorship
C (regular) Corporation
S Corporation
Partnership
Limited Liability Partnership - LLP
Limited pany - LLC
Major Types
TAXABLE ENTITIES
Sole proprietorship
C corporation
• FLOW-THROUGH OR CONDUIT OR PASS-THROUGH ENTITIES
S corporation
Limited panies
Limited Partnerships
Partnership
Taxation Of Businesses
e from sole proprietorships and flow-through entities
is taxed once at the individual owner level while corporate e is taxed twice,
once at the corporate level
and again at the shareholder level upon dividend distributions or stock sales
Define A Corporation
A business entity with two or more owners is classified as either a corporation or a partnership
A business entity with one owner is classified as a corporation or a sole proprietorship
Define A Corporation
A business entity is a corporation if it anized under a federal or state statue that refers to the entity as incorporated or as a corporation
If a business entity incorporates, it is a corporation
Define A Corporation
If a business forms itself as a Partnership, Limited pany(LLC) Or Limited Liability Partnership(LLP), the entity can elect to be taxed as either a partnership or corporation
Similarities Of Individuals And Corporations
putation of taxable e
Allowed to deduct ordinary and necessary business expenses
Can deduct interest and depreciation