Margaret Rager | Kelly Right real estate | 509-498-0343
Margaret Rager | Kelly Right real estate | 509-498-0343
This is not a separate legal entity; it is single individual doing business. You would have unlimited personal liability for the business. All income from the RV Park would be reported on your 1040 schedule C.
A partnership is a separate legal entity, there are two types of partnerships a general partnership where you and your partner will have unlimited personal liability and a limited partnership has limited personal liability. Partnerships file an information return on form 1065 which flows through to each partners share of income / losses on schedule K-1 which is reported on their personal return.
An LLC (Limited Liability Company) is a separate legal entity with some corporate, some partnership characteristics, created by state statute. Owners are called members. A single member LLC is has the same tax treatment as a sole proprietorship where the income and losses are reported on 1040 schedule C. A multiple member LLC is treated like a partnership, where and informational return is reported on form 1065 which flows through to your personal return from schedule K-1.
A domestic U.S. C-corporation that elects to be treated as a passthrough entity for federal tax purposes. (No foreign corporations may become S-corporations.) Corporation files informational income return on form 1120S. Shareholder-employee compensation subject to withholding, but shareholder distributions not. Shareholders pay personal tax rates on pro-rata share of income/losses. No special allocations. Fringe benefits included in compensation of shareholders owning 2% or more interest. Shareholder basis includes corporate debt to that shareholder, but not general corporate debt. Generally eligible for tax-free merger with C-corp. Former C-corp taxed on gain from appreciated assets.
A separate legal entity incorporated under a state business corporation statute. This is the classic regular corporation. Separate entity taxation at corporate tax rates, taxes are filed on form 1120.Corporation pays income/estimated tax, applicable employment and excise taxes. Taxed on gain of appreciated assets. May deduct employee fringe benefits, exclude/defer certain gains, and carry certain losses. May deduct officer and shareholder-employee reasonable compensation. Shareholders pay tax on dividends.
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