True/False -Answer on bubble sheet

A corporation is "born by application to the federal government.

A partnership normally has both articles of organization and a partnership agreement.

Large corporations (more than 100 shareholders) must legally be C Corporations.

A Limited Liability Company (LLC) must plan for "double-taxation".

S. A Single-member LLC that does not elect to be taxed as an S Corporation is a "disregarded entity"

Each separate legal entity should have articles of formation and an agreement.

C Corporations must be concerned about the "accumulated earnings tax".

All corporations recognize gain on the distribution of appreciated property.

Both tax and non-tax objectives should be considered when choosing an appropriate business entity.

Partnerships pay income taxes on its' earnings.

Sole proprietorships are the simplest form of business entity.

A fiscal year is any 12 month period. All entities must use a calendar year-end.

Corporations are legally formed by filing articles of incorporation within the state of its creation.

S Corporations have more restrictive ownership requirements than other entities.

Section 1231 recapture is an important consideration when selling a business asset.

Assumption of liabilities is the same as paying cash.

An LLC can elect to be taxed as a partnership or an "S" corporation.

Owners of flow-through entities can be "active" or "passive"

Owners of a limited liability company are called members.

Owners of a corporation are called shareholders.