Questions from Individual Taxation

Q: Explain how liabilities of an LLC or an S corporation affect the

Explain how liabilities of an LLC or an S corporation affect the amount of tax losses from the entity that limited liability company members and S corporation shareholders may deduct. Do the tax rules...

Q: Does a residence for tax purposes need to be situated at a

Does a residence for tax purposes need to be situated at a fixed location? Explain.

Q: Compare the entity level tax consequences for C corporations, S corporations

Compare the entity level tax consequences for C corporations, S corporations, and partnerships for both nonliquidating and liquidating distributions of noncash property. Do the tax rules tend to favor...

Q: If limited liability companies and S corporations are both taxed as flow

If limited liability companies and S corporations are both taxed as flow-through entities for tax purposes, why might an owner prefer one form over the other for tax purposes? List separately the tax...

Q: What are the tax advantages and disadvantages of converting a C corporation

What are the tax advantages and disadvantages of converting a C corporation into an LLC?

Q: What are the most common legal entities used for operating a business

What are the most common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes?

Q: How do business owners create legal entities? Is the process the

How do business owners create legal entities? Is the process the same for all entities? If not, what are the differences?

Q: What is an operating agreement for an LLC? Are operating agreements

What is an operating agreement for an LLC? Are operating agreements required for limited liability companies? If not, why might it be important to have one?

Q: How do corporations protect shareholders from liability? If you formed a

How do corporations protect shareholders from liability? If you formed a small corporation, would you be able to avoid repaying a bank loan from your community bank if the corporation went bankrupt? E...

Q: Other than corporations, are there other legal entities that offer liability

Other than corporations, are there other legal entities that offer liability protection? Are any of them taxed as flow-through entities? Explain.