Jack and Jill decided to pool their money and start a water delivery business. Since they trust each other so much, they did not draw up any legal documents for the business. During the first year of business, they earned $50,000 which was net of $10,000 paid to Jill as a guaranteed payment. During the second year of business, they decided to limit their liability exposure by forming an LLC
a. Was a partnership formed during the first year?
b. If a partnership was formed, how much income will be taxed at the partnership level?
c. For the second year, do they need to file a partnership tax return?
a. Yes.
b. $0 . There is no tax at the partnership level. The partnership income and other items
are passed through to the partners and taxed at the individual level.
c. Yes. An LLC is generally treated as a partnership for tax law purposes.
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Brenda is the newly appointed sales manager for Beta Business Products. She knows sales force management is a dynamic process and therefore
A. Arranges her office to facilitate leadership B. Studies her firm's environmental circumstances including both internal and external environments C. Solicits business from old contacts as a first priority D. Sells senior management on the idea of leaving the sales force alone E. Offers bonuses to salespeople who meet their goals
Secondary data are data collected for some purpose other than the problem at hand
Indicate whether the statement is true or false