This mini-course describes and compares sole proprietorships, partnerships, limited liability companies, “C” corporations, and “S” corporations. It examines their advantages and disadvantages, permitting the participant to properly select the right business entity for their tax and liability needs.
- Cite the central differences among business entities and the advantages and disadvantages associated with basic business entity types.
- Recognize the tax attributes of sole proprietorships, partnerships, LLCs, S corporations, and C corporations and how each entity can be used to enhance tax and financial purposes and objectives.
- Specify the unique (e.g., self-employment) and general taxes applicable to particular entities and the tax forms that may be required.
- Identify the basic deductions that are permissible for each entity type and the conditions under which they are allowed.
- Determine the tax years, accounting methods, and valuation methods that each entity type may use, and how the entities can be terminated.
- Specify for different entity types the basis and the tax effect of sales, exchanges, transfers, contributions, and distributions.
- General understanding of federal income taxation