[Nail Salon] Thea and her friends Josef and Danny, all U.S….
[Nail Salon] Thea and her friends Josef and Danny, all U.S. citizens, want to open a nail salon. They would all like to avoid personal liability for debts of the business and/or wrongful acts of each other. They would also like to minimize taxation. Thea is in favor of a corporation and asks if there is any problem with that form of business. Josef and Danny say that they are concerned about double taxation with a corporation and that they are in favor of a partnership, even if personal liability is a concern. Thea said that she was concerned about the deductibility of losses if the corporate form was chosen. She did some research and suggested an S corporation to Josef and Danny which she claimed would avoid the problem of double taxation. In regard to losses, what type of tax treatment would an S corporation provide?
Read DetailsQ22: Alexa has an amazing sangria recipe that calls for red…
Q22: Alexa has an amazing sangria recipe that calls for red wine, orange juice, and various diced fruits. Her mixture includes 7 parts red wine to 2 parts orange juice. If she uses 21 parts of red wine, how much orange juice should she use? [a] If she uses 9 parts of orange juice, how much red wine should she use? [b] If she wants to make 12 cups of sangria, she should use [c] cups of red wine and [d] cups of orange juice. Write your answer a mixed number (For example, 4 1/2 or 6 2/3).
Read Details[Drone Debacle] Bruno and Martin run Skyview, LLC, a drone c…
[Drone Debacle] Bruno and Martin run Skyview, LLC, a drone company that takes aerial photographs. After an accident with the drone, Bruno tells Martin that he does not want to be involved in management any longer. Martin tells Bruno that if he stops participating in management, they will no longer be protected by the limited liability of an LLC. Bruno says that if there is a lawsuit, they are both equally liable. Martin replies that if Bruno wants, he could be a limited LLC member and then he won’t have a say in the company. Is Bruno correct that they would both be equally liable?
Read Details