Advance Tax

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700 words

 

Your client has been informed that an S corporation is a popular business form and wants to know more about it. Please write a professional memo to your client responding to his inquiry. Be sure to at least discuss the following items:

  • What is an S corporation?
  • When is it advisable to be taxed as an S corporation?
  • How does an organization become an S corporation?
  • If The Car Wash is a corporation, can they be taxed as an S corporation?
    • Why or why not?
    • What criteria must be met?
  • If The Car Wash is a LLC, can it be taxed as an S corporation?
    • If so, what does it need to do to elect S corporation status?
  • How would The Car Wash report and pay tax if it is an S corporation?

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