Question

3. Explain the tax implications of each of the following forms of business: a. Sole proprietor....

3. Explain the tax implications of each of the following forms of business:

a. Sole proprietor.

b. Partnership.

c. Corporation.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a)Sole proprietorship business structure act as the same entity as the owner of business.In other words,it is not separate from its owner.Business income from sole proprietorship is taxed in the hands of the proprietor.In other words,sole proprietorship income is taxed as the income of owner.

b)Tax implication of partnership is somewhere similar to Sole proprietorship.Partnerships themselves are not actually are not subject to tax.In case of partnership,each of the partners will be taxed upon his or her share of the income from the partnership.

c)Unlike sole proprietorship,corporations are treated as separate legal entity.It means that corporations itself is taxed on all profits it earned.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Anna is the sole proprietor of a successful small business and she is looking to expand....
Anna is the sole proprietor of a successful small business and she is looking to expand. Anna also holds stock in "x" corporation and could take a distribution from the corporation in order to fund the expansion of her small business. Compare and contrast the distribution of assets from a corporation to a shareholder to the distribution of assets to a sole proprietor and give Anna advice as to why this may or may not be the best option for...
A sole proprietor has total control of the decision making over the business. Selling and transfer...
A sole proprietor has total control of the decision making over the business. Selling and transfer the business can take place at the readiness of the sole proprietor. Sole proprietorships have no corporate tax payments and have minimal legal costs when forming. There are few formal business requirements for creating one. However, a sole proprietor is fully liable for the debts and obligations of his business. The risk includes any liabilities incurred as a result of acts committed by employees...
1. Monk, a sole proprietor, forms a C corporation and transfers property with an adjusted basis...
1. Monk, a sole proprietor, forms a C corporation and transfers property with an adjusted basis of $140,000 and fair market value of $260,000. Monk is the sole owner of the corporation. What amount of gain must Monk recognize in the year he transfers the property? a. $120,000 b. $260,000 c. $0 d. $140,000 2. Based on the facts in the question #1 above, what is Monk’s basis in the corporation’s stock? a. $0 b. $260,000 c. $140,000 d. $120,000...
What are the advantages and disadvantages of each of the following business form: (1) sole proprietorship,...
What are the advantages and disadvantages of each of the following business form: (1) sole proprietorship, (2) partnership and (3) a corporation. Also, can you tell me specifically what New York requires to incorporate a business? Please provide a link to the state's information.
In which forms of business organization are the owners personally liable for all the debts of...
In which forms of business organization are the owners personally liable for all the debts of the business ? ☆ Sole proprietorship and corporation. ☆Partnership and corporation. ☆Sole proprietorship and partnerships. ☆Corporations and Ltd. companies. which one is the correct answer (?)
Discovering Career Opportunities Are you best suited to working as a sole proprietor, as a partner...
Discovering Career Opportunities Are you best suited to working as a sole proprietor, as a partner in a business, or as an employee or a manager in a corporation? For this exercise, select three businesses with which you are familiar: one run by a single person, such as a web design consultant or a local landscaping firm; one run by two or three partners, such as a small accounting firm; and one that operates as a corporation, such as Target...
10) Taxpayer operates a business as a sole proprietor. During the year, Taxpayer incurred the following...
10) Taxpayer operates a business as a sole proprietor. During the year, Taxpayer incurred the following expense in operating that business. Determine the total business expense deduction to which Taxpayer is entitled after all applicable limitations. FOR THE TAX YEAR 2019 Employee salary - $15,000 Payroll taxes - $1,500 Lunch with a client - $250 Ticket to Superbowl with best client - $3,500 Contribution to the mayor's re-election campaign - $500 Cell phone bill of Taxpayer's son, who does not...
Information provided for a sole proprietor in the company general tax information preference includes______. a. company...
Information provided for a sole proprietor in the company general tax information preference includes______. a. company type, b. filing name, c. filing address, d. all of the above, QBO
4. Forms of business organizations Businesses can be classified into the following forms: proprietorship, partnership, corporation,...
4. Forms of business organizations Businesses can be classified into the following forms: proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics belong to a limited liability company? Check all that apply. ( ) Types of businesses that may adopt this form designated by states ( )Owners with limited liability and possibly significant input into daily management of the firm ( ) Subject to double...
Steven operates a restaurant as a sole proprietor and files a Schedule C for the business...
Steven operates a restaurant as a sole proprietor and files a Schedule C for the business activity. Which of the following assets, all of which he owns, qualify as a capital asset for Steven? A. The portable sound system used only in the restaurant to play “theme music”. B. None of the assets listed in a, b or c qualify as capital assets for Steven. C. The interest-bearing savings account used only to keep the restaurant’s excess cash. D. The...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT