LLC Vs Llc Case Summary

Satisfactory Essays
1. Ask the client for their previous 3 years of tax return to evaluate their tax brackets. Then ask the client what their expectations of the business are. A business expecting to initially incur losses would likely be suited to flow through entities such as partnerships, LLC or an S-corp to offset the client's income from other sources and reduce their tax liability. A client in a lower tax bracket would best be suited for a flow-through entity regardless of the business operations.

2. How many investors does the company look to have and what type of investors are they? C-corporations have no restrictions for shareholders whereas S-corporations are limited to 100 shareholders and shareholders cannot be a nonresident alien, corporation,
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