If your client wanted to start a new business, for example manufacturing watches, and asked you to identify the tax consequences of being in business as a sole proprietor, regular ‘C‘ corporation, S corporation or a partnership, what would you recommend?
Please include:
- Tax Rates
- Accounting methods
- Computation of income
- Deductions
- Charitable contributions
- Casualty losses
- Ownership
- Net operating loss
- Capital gains and losses
- Dividends / distributions
- Due dates
- Filing
This is not an all-inclusive list. Please site all of your sources.
Sample Solution