Corporations, Partnerships and Other Business Entities--Introduction

Course Description:

According to the IRS close to 38 million tax returns were filed for businesses in 2013 (which is the latest year for which statistics are currently available). All of these businesses, both large and small, share some common basic characteristics in that they were required to select a general business structure for tax purposes.

Taxpayers conducting a business have the option of choosing from a variety of different legal structures for their operation. A number of different factors must be taken into consideration by the taxpayer, including the number of employees who will be involved, the amount and source of the capital that will be used to start and operate the business and whether the nature of the business may expose the taxpayer to potential lawsuits and other financial liabilities.

Learning Objectives:

Upon completion of this course, you will be able to:

  • identify in general terms the nature of the tax liabilities that apply to the six most commonly used types of business entities under the United States tax code
  • identify the advantages and disadvantages of selecting each of the six available entities for the structure of a business operation
  • identify the time period that must generally elapse before a business that has elected to change its classification can make a new election, and identify the circumstances in which this time period requirement may be waived
  • identify the method and form used to elect S corporation status, including the date that the election becomes effective under different circumstances
  • identify the four main characteristics required by an organization that wishes to obtain and maintain tax-exempt status
Tax Year: 2018
Prerequisites: None
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