RMI is a corporation, an entity with the ability to sue and to be sued. By forming a corporation, owner is insulated from legal and financial obligations of the corporate. A corporation has shareholders who exchange money, property, or both, for the corporation stock operates in a similar as a sole proprietorship with benefits of taking special income taxes deductions. However, the corporation’s profits are taxed twice in that the corporation is taxed when profits are earned and distributed shareholders’ dividends are taxed too. In the described business structure, shareholders cannot deduct any loss of the corporation.
Huffman is also a corporation, a legal entity with similar legal rights as an individual. Huffman pays its taxes and later shareholders pay income tax when dividends are paid..
KFF is a sole-proprietorship owner by Kudler. KFF is legally the same as its natural person owner where the sole-proprietorship is only taxed once on the income, however Lisa is responsible for the entity’s liabilities.
MFS is a limited liability partnership (LLP). In this structure each partner is fully liable for the debts of the partnership but not for professional negligence or malpractice committed by the other partners. Membership is allowed to consists of individuals, corporations, other limited liability companys (LLCs) and foreign entities.
The EG is a not for profit corporation that is controlled by a board of trustees. The corporation is protected from liability issues and pays both corporation and shareholders’ dividend taxes. Similarly, SSC is a corporation.
Potential owners, partners, limited partners and sh ...