Julie wants to create an S corporation called J's Dance Shoes (JDS). Describe how the items below

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Julie wants to create an S corporation called J's Dance Shoes (JDS). Describe how the items below affect her eligibility for an S election.
a. Because Julie wants all her shareholders to have an equal say in the future of JDS, she gives them equal voting rights and decides those who take on a more active role in the firm will have priority in terms of distribution and liquidation rights.
b. Julie decides to incorporate under the state laws of Utah where she lives. Once she gets her business up and running, however, she plans on doing extensive business in Mexico.
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...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....
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Related Book For  answer-question

Taxation Of Individuals And Business Entities 2015

ISBN: 9780077862367

6th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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