Complete the e$-$mail below by classifying each of the situations as an "Advantage of partnership" or a "Disadvantage of partnership" over operating as a C or S corporation.

To:$$Liang Industries

From:$$Shelly Nunez

Date:$$February $1,2024$

Subject:$$Advantages and disadvantages of a partnership compared to a C corporation$$You have asked when a partnership might be more or less advantageous than a C corporation. Below are several situations to be considered.

a$.$If the entity plans to distribute its excess cash flow to the owners on a regular basis.

Advantage of partnershipDisadvantage of partnership

b$.$If the entity owners are individuals and the income will be eligible for the qualified business income deduction.

Advantage of partnershipDisadvantage of partnership

c$.$If the entity currently operates as a C corporation and has substantial built$-$in gains on its assets.

Advantage of partnershipDisadvantage of partnership

d$.$If special allocations of income, expenses, and cash flows can be made by the entity owners.

Advantage of partnershipDisadvantage of partnership

e$.$The entity has taxable losses that the owners can utilize on their individual tax returns.

Advantage of partnershipDisadvantage of partnership

f$.$If the entity will exist for only a short period of time.

Advantage of partnershipDisadvantage of partnership

g$.$The entity is in a high$-$risk business and the owners require protection from personal liability.

Advantage of partnershipDisadvantage of partnership

h$.$If the entity plans to lease property from the owners or the owners plan on loaning funds to the entity.

Advantage of partnershipDisadvantage of partnership