Corporation Vs Partnership.DOCX

Corporation Vs Partnership

Corporation Vs Partnership

Student’s Name

Institution


 

Corporation Vs Partnership

Question 1

To understand the tax rule differences between the partnership and corporation. One thing is that partnership is not at any time treated as a legal entity that is separate from the owners. In this case, it means that partnership does not pay taxes. Under the     IRS it states that income that the partnership structures the profits which a business earns by the end of the day flows directly to the personal income tax returns of the owners. On the other hand, a corporation is described as a legal entity that is separate from the owners for the tax purpose. In this case, the IRS treats the corporation in a way that it has to pay the income taxes on profit whey are earned (Honeyman,2014).. In this case, it means that the stakeholder of a corporation is not responsible for paying taxes on the profit which
Powered by