Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed?
Answer to relevant QuestionsKesha, a sole proprietor, is engaged in a cash basis service business. In the current year, she incorporates the business to form Kiwi Corporation. She transfers assets with a basis of $500,000 (fair market value of $1.2 ...In January 2014, Wanda transferred machinery worth $200,000 (adjusted basis of $30,000) to a controlled corporation, Oriole, Inc. The transfer qualified under § 351. Wanda had deducted $165,000 of depreciation on the ...In each of the following independent situations, determine the corporation’s income tax liability. Assume that all corporations use a calendar year for tax purposes and that the tax year involved is 2014. Taxable ...Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. During the current year, Otter Enterprises has $320,000 of gross income and $210,000 of operating expenses. In addition, Otter has a long-term ...Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year. Income from services ............... $400,000 Salaries paid to employees ............. ...
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