Loose Leaf for McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
10th Edition
ISBN: 9781260189728
Author: Brian C. Spilker Professor, Benjamin C. Ayers, John Robinson Professor, Edmund Outslay Professor, Ronald G. Worsham Associate Professor, John A. Barrick Assistant Professor, Connie Weaver
Publisher: McGraw-Hill Education
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Question
Chapter 15, Problem 1DQ
To determine
List the most common legal entities that are used for operating a business. Discuss how these entities are similar and different for state law purposes.
Expert Solution & Answer
Explanation of Solution
The following are the most common legal entities that are used for operating a business:
- Corporations.
- Limited liability Companies (LLCs).
- Partnerships.
- Sole Proprietorships.
The following are the similarity of the above entities for state law purposes:
- The state laws protect all the members or owners of Corporations and LLCs from personal legal entities.
- Corporations, Limited liability Companies (LLCs), and Partnerships are identified as business entities for state law purposes.
The following are the differences among the above entities for state law purposes:
- The legal rights and responsibilities, and number of owners of each entity are different from other.
- The tax rule to determine tax on the entities and their owners are different from each other.
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Chapter 15 Solutions
Loose Leaf for McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
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Similar questions
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- The economic entity assumption requires that the activities Select one: a. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. b.of an entity be kept separate from the activities of its owner. c. of different entities can be combined if all the entities are corporations. d.must be reported to the Securities and Exchange Commission.arrow_forwardIn terms of Accounting Theory: Part A - What are the symptoms of a regulatory system being public, private or capture? Part B - What is the difference between private interest theory and regulatory capturearrow_forwardIn a "mixed contract," one involving both the dale of goods and services, does the UCC apply or does common law apply? How does a court determine which law to apply? Explain your answer.arrow_forward
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