Asked in Business Accounting and BookkeepingBusiness LawIncorporation
Business Accounting and Bookkeeping
When a corporation receives a dividend from another corporation how is it taxed?
Which form of business organization is taxed twice?
a C corporation the corporation is a separate entity who's profits are taxed then what's left of those profits are distributed/shared by the individual share holders who will be taxed on their individual share of the profits. Where as in a S corporation, subchapter corporation, the corporation entity I believe doesn't get taxed only the individual share holders do. Most small businesses are S corporations.
When a company files as an LLC on a W9 form what would be the appropriate circumstance in which a corporation would be chosen as the tax classification?
Asked in Estates, Landlord-Tenant Issues
What is the tax rate when you sell a house owned by a corporation?
Asked in Business Law, Incorporation
What is the difference between Inc and LLC?
Like a Corporation, an LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship (unless the LLC elects to be taxed as a Corporation). This allows an LLC to pass all its income and losses through to the owners. Furthermore, the LLC has an advantage over a C-Corporation which makes an S-Corporation tax election because the S-Corporation can only have 100 stockholders and the stockholders cannot be Corporations or non-U.S.
Asked in Small Business Loans, Business Plans, Business Accounting and Bookkeeping, The Difference Between
Limited company may choose to retain profits?
Asked in Companies
What is the portion of corporate profits paid out to stockholders called?
The portion corporate profits paid out of stockholders is A dividend is quarterly payment to stockholders of record, as a return on investment. Dividends may be in cash, stock, or property, and are declared from operating surplus. If there is no surplus, the payment is considered a return on capital. Dividend payments are, in effect, taxed twice-once when corporate profits are taxed and again when the dividend is received by a taxpaying stockholder. The corporate profits paid out to stockholders is called dividends.
On what basis are mutual funds taxed?
How would you describe a limited-liability corporation?
There is no such thing as a 'limited-liability corporation'. A 'limited liability company' is an unincorporated organization that is treated as a separate entity from the members (equivalent to stockholders of a corporation) but is ignored for tax purposes. A single member limited liability company is treated as if the income is that of the member. A multiple member limited liability company is treated as a partnership. Unless the LLC chooses to be taxed separately as a corporation. Limited-liability companies enjoy the benefits of limited liability while being taxed like a general partnership. Owners' net income is taxed at an individual personal rate rather than at the rate of a corporation
Asked in Business & Finance
Corporation vs LLC?
Assuming you refer to a C-corporation, the major difference is the tax treatment of revenue/expenses and profit. The C-corporation is taxed at corporate tax rates whereas the LLC passes to its Managing Members all of its profits. The individual Managing Member is taxed at personal tax rates. There may or may not be other advantages of one over the other; for example, liability.
Asked in Economics
What happen to the competition in gasoline pricing?
How much money in gifts can I receive each year before being taxed?
Asked in Incorporation
When an S-Corporation dissolves can the officers be held liable for its debt?
Which is better for a small business - an LLC or an INC?
It would depend on the level of personal asset protection you want/need, if you will have employees and how you want to be taxed. This explanation of each business type is from the Indiana State website for small business guidance. http://www.in.gov/sos/business/corps/guide.html * Corporation: A legal entity which is created by filing Articles of Incorporation. The Corporation itself assumes all liabilities and debts of the Corporation. A corporation is owned by shareholders. A shareholder enjoys protection from the corporation's debts and liabilities. TAX: Income is taxed twice: 1) at the corporate level; and 2) at the employee level when a wage is paid or at the shareholder level when distributed as a dividend. * S-Corporation: After filing Articles of Incorporation, a Corporation may seek to obtain S Corporation status for federal income tax purposes. The income of an S Corporation is taxed only once: at the employee or shareholder level. To qualify, the corporation may not have more than 75 shareholders and must meet other certain Internal Revenue Service criteria. The corporation must submit IRS Form #2553 to the IRS. An S-Corporation is considered a corporation in all other respects and is subject to no additional or special filing requirements with the Secretary of State. * Limited Liability Company: An LLC is a formal association which combines the advantage of a corporation's limited liability and the flexibility and single taxation of a general partnership. An LLC has members rather than shareholders. A member enjoys protections from the liabilities and debts of the LLC. Although not required by law, an LLC should operate under an Operating Agreement which is like a Partnership Agreement. TAX: If the LLC qualifies under IRS guidelines, it may be taxed only once, like a partnership, at the employee or member level, while not having the same restrictions as an S-Corporation.
Asked in Income Taxes
What are the tax liabilities of a firms?
Which firm do you refer to?? Reg C corp, S corp, LLC, or LLP??? A regular corporation , I mean a C corporation, is taxed as a separate entity under the tax laws. Income earned by a corporation is normally taxed at the corporate level using the corporate income tax rates shown in the table below, and the corporation must file a Form 1120 each year to report this income. After the corporate income tax is paid on the business income, any distributions made to stockholders are taxed again at the stockholders' tax rates as dividends. Because of these two levels of tax, a regular corporation may be a less desirable form of business than the other business entities (sole proprietorships, partnerships, limited liability companies, or S corporations). This may be true even though regular corporations are taxed at lower tax rates on their first $75,000 in income.
Asked in Incorporation
Can you get a limited liability company to be a separate entity like a c corporation in Michigan so i get taxed as a separate entity?
Asked in Business and Industry
What does LLC do for customers?
What is a K-1 used for?
If a corporation has elected sub-S tax status (corporate profits are passed through to the stockholders and taxed on their personal returns), the K-1 is a form isuued by the corporation to the stockholder indicating the amount of income from the corporation that the stockholder should report on their personal return.
Asked in Business & Finance, Business Plans, Google
What is the advantage of an S-corporation?
The net income of an S-Corporation are taxed to the end of the S-Corporation's fiscal year as part of the income taxes that are paid during the shareholders tax year in which the S-Corporation completes its fiscal year. This provides a benefit of avoiding the corporation "double-tax". That is, with other types of corporations, the corporation pays the taxes directly. Then, when you sell your stock in the company the increased value of the stock is taxed again. When you sell an S-Corporation stock, you are not taxed on the gain as a stockholder because the tax was already paid when the corporation reported income. The corporate tax rate is also usually higher than the highest individual tax rates. If the tax is paid through an individuals income tax, the overall tax paid as a percentage of the corporations income is lower than it would be under other types of corporations. An S-Corporation also has an added benefit when it takes a loss for the fiscal year. With other types of corporations, usually a loss results in zero tax. With an S-Corporation, the loss is passed to the shareholders who can deduct the loss from their income for individual income tax purposes, resulting in a lower tax for the individual.