Strayer Common Business Structures Partnership Corporation & S Corporation Paper

User Generated

Vmmlybcrms

Business Finance

Strayer University

Description

You will conduct research on https://www.irs.gov, consult your textbook, and refer to other similar, reputable resources on taxation. Your goal is to compare the three major forms of corporate organizations: partnerships, s-corporations, and corporations. You will then select a domestic organization, identify its entity type, and describe how the organization’s tax methods are detailed in its financial report.

To complete Assignment 1, write a four to five (4-5) page paper in which you do the following:

  1. Compare and contrast the tax rules and treatment applicable to those three forms of organization and the major way in which the tax treatment affects the shareholders or partners.
  2. Explain at least two reasons why a business owner might opt for one form of organization over another. Provide support for your rationale.
  3. Identify two sources of tax guidance (e.g. IRS code, Revenue Procedure) for each form of organization and how it defines a component of the tax policy for that form of organization.
  4. Research an organization by identifying its entity type (corporation, s-corporation, or partnership) and describe how that organization’s tax methods are detailed in their financial reports.
  5. Locate at least three quality academic resources for this assignment. Note: Wikipedia and similar websites do not qualify as academic resources.
  6. Assignment will be check for plagiarism.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Here you go. In case of any further inputs please let me know!It was good working with you! 👋 Thanks for using Studypool. Take care and good luck!All the best

Running Head: BUSINESS ENTITY

1

Business Entity
Name
Course
Tutor
Date

BUSINESS ENTITY

2
Business Entity

Among the most significant decisions to make before starting a business is determining its
ownership. This aspect defines the legal structure of an enterprise, the model through which
owners will earn an income and their taxation structures. A business structure also influences the
amount of paperwork that is required and personal liability of owners (Turner & Endres, 2017).
The following discussion explores three common business structures, partnership, corporation and
S corporation. Each form of ownership has unique features that determine the mode of taxation.
Taxation Rules and Treatment
A partnership is a business arrangement where management responsibilities and ownership
are divided among two or more individuals. The legal entity of this business is not separate from
owners and, therefore, the business does not pay taxes directly. The regulation of the Internal
Revenue Service requires partners to file tax return combinations of all their personal income taxes
from the profits generated by the partnership (Turner & Endres, 2017). For example, if a business
owned by four individuals makes profits of $120,000, the revenue will be appropriated equally.
Each partner will get $30,000, which is subject to personal tax returns.
A significant concern that affects shareholders in this business structure is that partners do
not pay direct taxes since the income is appropriated through profits or losses of individual owners.
A partner can file Form 1065 to report profits or losses on personal liability (Hamel, n.d). Another
treatment of partnership is that each partner can act on behalf of the business and make a decision
that affects all the binding partners where agreements permit. It implies that one partner can acquire
debts...


Anonymous
This is great! Exactly what I wanted.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags