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Author Question: An individual in the top tax bracket is planning to establish a new corporation and is weighing the ... (Read 113 times)

jerry coleman

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An individual in the top tax bracket is planning to establish a new corporation and is weighing the choice between the C corporation form and the S corporation form. She expects the corporation to be profitable each year, with all profits reinvested excepted to the extent needed to pay corporate taxes or shareholder taxes on profits.  The shareholder's plan is to sell the business after six years for a substantial gain. The C corporation will qualify as a small business corporation under Sec. 1202. Applying the C Corporation Model and the Flow-Through Model
◦ the C corporation form will provide a greater return for the period of ownership if the stock is sold after the six years.
◦ the S corporation will provide the greater return for the period of ownership if the stock is sold after the six years.
◦ the S corporation will provide the greater return for the period of ownership if the stock is instead sold before five years.
◦ Both the C corporation form will provide a greater return for the period of ownership if the stock is sold after the six years and the S corporation will provide the greater return for the period of ownership if the stock is instead sold before five years are correct.


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Marked as best answer by jerry coleman on Sep 13, 2020

smrtceo

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jerry coleman

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Reply 2 on: Sep 13, 2020
YES! Correct, THANKS for helping me on my review


recede

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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