Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Assignment 1: What Business Entity Works Best? Due Week 8 and worth 295 points For Assignment 1, you will conduct research on, consult your textbook, and refer to other similar,...

1 answer below »

Assignment 1: What Business Entity Works Best?

Due Week 8 and worth 295 points

For Assignment 1, you will conduct research on, consult your textbook, and refer to other similar, reputable resources on taxation. Your goal is to compare the three major forms of corporate organizations: partnerships, s-corporations, and corporations. You will then select a domestic organization, identify its entity type, and describe how the organization’s tax methods are detailed in its financial report.

To complete Assignment 1, write a four to five (4-5) page paper in which you do the following:

  1. Compare and contrast the tax rules and treatment applicable to those three forms of organization and the major way in which the tax treatment affects the shareholders or partners.
  2. Explain at least two reasons why a business owner might opt for one form of organization over another. Provide support for your rationale.
  3. Identify two sources of tax guidance (e.g. IRS code, Revenue Procedure) for each form of organization and how it defines a component of the tax policy for that form of organization.
  4. Research an organization by identifying its entity type (corporation, s-corporation, or partnership) and describe how that organization’s tax methods are detailed in their financial reports.
  5. Go tohttps://research.strayer.eduto locate at least three quality academic resources for this assignment.Note:Wikipedia and similar websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • This course requires use ofStrayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the source list are not included in the required assignment page length.

The specific course learning outcome associated with this assignment is:

  • Evaluate the tax rules and treatment applicable to organizations and their impact on shareholders.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using thisrubric

Answered Same Day Aug 18, 2021


Harshit answered on Aug 29 2021
114 Votes
The major difference between a partnership organization and a corporation is that in case of a corporation, there is presence of corporate veil which means that the corporation and its owners are separate from each other and the owners are not personally liable for the damages of the corporation. But in case of a partnership, the partners are liable for the damages caused by the partnership firm but the partners are not liable for the tax of partnership. The provisions of income tax are complex for the corporations in comparison to the partnership therefore people often prefer partnerships than to corporations. The corporations can file a case on its name but the partnership cannot do the same as the separate legal entity is absent. S-corporations are also a form of corporation wherein the number of shareholders is restricted to 100 and should follow under the specific Internal Revenue Code Requirements.
Part 1
Comparing the tax rules and the treatment of tax for the following:
· Partnership: The partnership ship firm is not a separate legal entity as discussed, which means that the partnership does not pay the taxes to the authorities by itself as the management and the ownership is divided amongst two or more individuals. In the united States the partnerships are not liable to pay taxes but the same is charged to the partners and t therefore they are responsible for the payment of income tax of the partnership firm as well.
· Corporation: As the shareholders who merely own the shares of the company are separate as the company is a legal entity of its own and therefore the liability of tax is in the hands of the corporation and not the owners or shareholders.
Part 2
An individual has many options when he thinks of starting a business and the organizational structure is of question. Starting the business on its own may...

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here