Chart of Entity Comparison Sole Proprietor Partnership C Corporation S Corporation LLC Legal Status Same entity as
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Question:
Chart of Entity Comparison
Sole Proprietor | Partnership | C Corporation | S Corporation | LLC | |
Legal Status | Same entity as owner | Separate entity from owner | Separate entity from owner | Separate entity from owner | Separate entity from owner |
Tax Year | Same as owner | Majority interest rules; principal partner rules; or the least aggregate deferral of income rule; exceptions may be the business purpose of 444 election | Calendar or fiscal year | Calendar year; 444 election; or business purpose demonstrated | Depends on tax status as sole proprietorship, partnership, or corporation |
Self-employment Tax | Yes | Yes if general partner, generally no if limited partner | No, since payment for services is in the form of wages | No, since payment for services is in the form of wages | Depends on tax status as sole proprietorship, partnership, or corporation |
Charitable Contributions | Generally 50% limitation | Generally 50% limitation at partner level | Generally 10% limitation | Generally 50% limitation at shareholder level | Depends on tax status as sole proprietorship, partnership or corporation |
Management | Owner | May be divided among partners | Board of Directors | Board of Directors | Per articles of organization |
Number of Owners | One | Unlimited | Unlimited | 100 | Depends on tax status as sole proprietorship, partnership, or corporation |
Question:
Choose four characteristics (Rows) and describe how two of the entity selections options differ (e.g. Basis Decrease from Operations in Sole Proprietor vs. C Corporation)
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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