Acc 561 Week 2 Paper

A limited liability company consists of a single owner, or sometimes more than one owner, and are not taxed as separate business entities. All profits and losses pass through the business to those who own the company. Owners must report profits and losses on their personal tax return filing as a corporation, partnership, or sole proprietorship. If the LLC is ran by a single owner, they file a 1040 Schedule C form as a sole proprietor. Partners file a 1065 form consisting of a partnership, and a form 1120 is filed if the LLC is filing as a corporation. The LLC must be registered such as the State Corporation Commission, Department of Commerce and Consumer Affairs, Department of Consumer and Regulatory Affairs, or the Division of Corporations and Commercial Code. The great thing about an LLC is that the owner has freedom in management. The owner is able to run the organization as they see fit not answering to anyone,

The scope of this document is to outline the process and procedures take to ensure the Kudler Fine Foods is in the best position to maintain the Frequent Shopper Rewards program that Smith consulting has put into place. The following document is a tool for Kudler Fine Foods to use to make sure that there is a checks and balances system in place as they move toward expanding the Rewards program and growing their customer base. To complete this task Smith Consulting has compiled a list of criteria to follow based on the

Discuss filing requirement? - Filing requirements are specified by law for each type of taxpayer. In addition, all corporation must file a tax return annually regardless of their taxable income. Therefore, estates and trusts are required to file annual income tax returns if their gross income exceeds $600. In the filing requirements for individual taxpayers are a little more complex as they depend on the taxpayer’s filing status, age and gross income. The gross income thresholds are calculated as the sum of the standard deduction, additional deduction for taxpayers age 65 or older and personal exemptions that should be applied to each respective filing status. In addition, the amounts are indexed each year for inflation. Thus, when a taxpayer is due a refund which happened to occur only when

Explain and evaluate: “if resources were infinitely abundant in relation to the demand for them, the economizing problem would dissolve in a sea of affluence.”

The first procedure an auditor could use is completeness testing. This is used to make sure the auditor has all information he or she would need to accomplish the task they have been given. A second procedure that could be used is classification. This is when information given must be clarified to the auditor. This would be needed for this circumstance when there was no clear answer given as to why GM chose the 6.75 discount rate. Another procedure that should be used is verification, this is when an auditor verifies that the completed records given to him occurred. A fourth procedure is existence. An auditor should verify that the company has existing investments that our meeting the objectives of the pension plan. A final action that should be taken is clarifying the objectives of the pension plan to ensure it is on the correct track for employee retirement benefits.

Limited liability company is a separate entity that separates the owner of the business. LLCs are no longer new and untested legal entity, they recognized in all fifty states and have established case law and statutes.

The corporation structure has multiple owners and operators and is complex and expensive. A corporation is an independent legal entity owned by shareholders. The corporation itself is legally liable for the actions and debts of the business. The advantages of a corporation structure are limited liability, ability to generate capital, corporate tax treatment, and attractiveness to potential employees. The disadvantages are time and money, double taxing, time, and paperwork. Corporations pay income tax on their profits. In some cases, corporations are taxed twice – first, when the company makes a profit, and again when the dividends are paid to shareholders on their personal tax returns (U.S. Small Business Administration, 2013).

A limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. The "owners" of an LLC are referred to as "members." Depending on the state, the members can consist of a single individual (one owner), two or more individuals, corporations, or other LLCs. Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses are "passed through" the business to each member of the LLC. LLC members report profits and losses on their personal federal tax returns, just as the owners of a partnership would.

RESEARCH PAPER ACCOUNTING 483 - FEDERAL TAX Section 01 1st Research Paper Spring 2014 Due Friday, March 14, 2014

iA Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.

5. LLCs. A business formed by permission of the secretary of state’s office. Its owners are referred as members. Each member report profit and loss on their own personal tax return. LLCs are not a separate tax entity.

Corporations and partnerships have traditionally served as the forms of organization from which business owners could choose. Recently, state statutes have begun to recognize a new form of business organization, the limited liability company (LLC). First recognized by state statute in 1977, the LLC is a hybrid

When it comes to taking responsibility for business debts and actions of a corporation, shareholders’ personal assets are protected. Shareholders can only be held accountable for their investment in stock of the company. Corporations have an advantage when it comes to raising capital for their business. They can raise funds through the sale of stock. Corporations file taxes separately from their owners. Owners of a corporation only pay taxes on corporate profits paid to them in the form of salaries, bonuses, and dividends, while any additional profits are awarded a corporate tax rate. Corporations are generally able to attract and hire good and motivated employees because they offer competitive benefits and the potential for partial ownership through stock options.

The most common forms of business are the sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company (LLC). The LLC is a relatively new business structure allowed by state statute. The sole proprietorships are the simplest form of business. The owner is only one person and

According to Oxford Dictionaries, an entrepreneur is a person who sets up a business taking on financial risks in the hope of profit. Also, an entrepreneur is a person with passion who is willing to take a lot of risks and not just someone with big innovative ideas.