LMC, Inc., is equally owned by Larry, Maurice, and Charles. The owners are sports agents. LMC's income

Question:

LMC, Inc., is equally owned by Larry, Maurice, and Charles. The owners are sports agents. LMC's income consists solely of fees from the owners' clients. During the current year, LMC's net income from operations is $380,000, and it receives $20,000 in interest income. The owns an interest in a limited that generates a $24,000 loss in the current year.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...