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1 pages/≈275 words
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-1
Style:
Other
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
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MS Word
Date:
Total cost:
$ 4.68
Topic:
Tax Specialist’s Rules for Organizations
Essay Instructions:
You are the lead S Corporations tax specialist in your area and you have asked to give a talk to business owners interested in this form of organization.
Explain the rules of forming an S Corporation, the basic rules, and how distributions work. Please be sure to cover operating issues, such as the identification of the corporation’s accounting period.
At least 150 words
Essay Sample Content Preview:
S Corporation
Student’s Name
Institutional Affiliation
Course Name and Number
Lecturer’s Name
Assignment Due Date
S Corporation
An S corporation (S-Corp) is any business that considers passing its income, deductions, credit and losses through shareholders for tax purposes. This consideration comes with limited liability and double taxation relief benefits (Kennan, 2019). Rules of forming an S corporation include the following:
* The company must be a domestic corporation (Incorporated in the US).
* The shareholders must be allowable. They must include individuals, certain estates and trusts. Also, the shareholders cannot be non-resident aliens.
* You can only have one class of stock.
* You cannot have over 100 shareholders.
* Your corporation cannot be ineligible (certain financial organizations and insurance companies, excluded from the S corporation structure).
S corporations distribute their earnings through dividend payments to shareholders. These earnings are subject to...
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