Fae and Carley had a tech business. After two unprofitable years, the business closed. At that point, the liabilities of the business were $100,000 larger than its assets. Under each separate situation, how much money (if any) can creditors take from Carley’s personal assets to pay the unpaid business debts? a. The business is set up as a limited liability company (LLC). b. The business is set up as an S corporation.

Fae and Carley had a tech business. After two unprofitable years, the business closed. At that point, the liabilities of the business were $100,000 larger than its assets. Under each separate situation, how much money (if any) can creditors take from Carley’s personal assets to pay the unpaid business debts? a. The business is set up as a limited liability company (LLC). b. The business is set up as an S corporation.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter15: Taxing Business Income

Section: Chapter Questions

Problem 3DQ

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