Chapter 16 Corporations
Chapter 16 Corporations
Learning Objectives Define a corporation Calculate the corporate income tax liability and explain specific tax rules Apply the non-recognition of gain or loss rules for corporate formations
Learning Objectives • Define a corporation • Calculate the corporate income tax liability and explain specific tax rules • Apply the non-recognition of gain or loss rules for corporate formations
Learning Objectives Understand the significance of earnings and profits Determine the consequences of distributions and stock redemptions Understand the consequences of a corporate liquidation to shareholders and the liquidating corporation
Learning Objectives • Understand the significance of earnings and profits • Determine the consequences of distributions and stock redemptions • Understand the consequences of a corporate liquidation to shareholders and the liquidating corporation
How A Business May Be Organized Sole Proprietorship c(regular) Corporation S Corporation Partnership Limited Liability Partnership -LLP Limited Liability Company -LLC
How A Business May Be Organized • Sole Proprietorship • C (regular) Corporation • S Corporation • Partnership • Limited Liability Partnership - LLP • Limited Liability Company - LLC
Major Types TAXABLE ENTITIES FLOW-THROUGH Sole proprietorship OR CONDUIT OR c corporation PASS-THROUGH ENTITIES s corporation Limited Liability Companies Limited Partnerships Partnership
Major Types • TAXABLE ENTITIES – Sole proprietorship – C corporation • FLOW-THROUGH OR CONDUIT OR PASS-THROUGH ENTITIES – S corporation – Limited Liability Companies – Limited Partnerships – Partnership