Conduct an Internet search to obtain information on other forms of business organization, such as a limited partnership and an S corporation. Explain your findings. (Minimum of 5 sentences please.)
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Anonymous
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A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs).
The GPs are, in all major respects, in the same legal position as partners in a conventional firm, i.e. they have management control, share the right to use partnership property, share the profits of the firm in predefined proportions, and have joint and several liability for the debts of the partnership.
An S corporation or S-corp, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.
In general, an S Corporation does not pay any income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
An S-corporation is a unique corporate classification under the U.S. tax law. In essence, S-corps don't pay any income taxes. The taxes are passed on to the shareholders, who pay taxes on their dividends. A limited partnership is halfway between a corporation and a partnership. There are general partners, which are like the partners in a traditional partnership, and there are limited partners, which are more like shareholders in a corporation. They have limited liability and provide funds but do not otherwise get involved in the management of the business.
Limited Partnership and a S-corporations are different in there own ways. First, Limited Partnership is a form of partnership of two or more people and includes of one limited partner. An LP are created by statut. While a general partnership has unlimited personal liability. The taxation between LP's and GP's are alson different. Information found at (www.quickmba.com). An S-corporation is a corporation which limited to 75 share holders and provides the benefits or an incorporation but it does eliminate double taxations. I found this information from (www.inc-it-now.com)
S corporations do not pay federal income tax. They may pay certain capital gains and passive income though. On tax returns the shareholders include their share of the corporation's separately on stated items of income, deduction, loss, and credit and their share is non separately stated income or loss.
Limited partnerships are created by statute, not by intentions of the partners. They also have the ability to override the partnership agreement. Lastly is the tax treatment, limited partnerships normally have a pass-through taxation, but have to meet a certain criteria or they will be taxed as a corporation.
I found that limited partnerships are most comman in the film and real estate industries. Well known limited partnerships are Bloomberg and CNN. I found that there can not be more that 100 shareholders to be an S Corporation. They have special tax status with the IRS.
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5 comments:
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs).
The GPs are, in all major respects, in the same legal position as partners in a conventional firm, i.e. they have management control, share the right to use partnership property, share the profits of the firm in predefined proportions, and have joint and several liability for the debts of the partnership.
An S corporation or S-corp, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.
In general, an S Corporation does not pay any income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
An S-corporation is a unique corporate classification under the U.S. tax law. In essence, S-corps don't pay any income taxes. The taxes are passed on to the shareholders, who pay taxes on their dividends.
A limited partnership is halfway between a corporation and a partnership. There are general partners, which are like the partners in a traditional partnership, and there are limited partners, which are more like shareholders in a corporation. They have limited liability and provide funds but do not otherwise get involved in the management of the business.
Limited Partnership and a S-corporations are different in there own ways. First, Limited Partnership is a form of partnership of two or more people and includes of one limited partner. An LP are created by statut. While a general partnership has unlimited personal liability. The taxation between LP's and GP's are alson different. Information found at (www.quickmba.com). An S-corporation is a corporation which limited to 75 share holders and provides the benefits or an incorporation but it does eliminate double taxations. I found this information from (www.inc-it-now.com)
S corporations do not pay federal income tax. They may pay certain capital gains and passive income though. On tax returns the shareholders include their share of the corporation's separately on stated items of income, deduction, loss, and credit and their share is non separately stated income or loss.
Limited partnerships are created by statute, not by intentions of the partners. They also have the ability to override the partnership agreement. Lastly is the tax treatment, limited partnerships normally have a pass-through taxation, but have to meet a certain criteria or they will be taxed as a corporation.
I found that limited partnerships are most comman in the film and real estate industries. Well known limited partnerships are Bloomberg and CNN. I found that there can not be more that 100 shareholders to be an S Corporation. They have special tax status with the IRS.
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