Adv Tax 2/3 Business Entities

No restriction on the number of shareholders.

• Corporation

• S Corporation

• Partnership

At least two partners.

• Corporation

• S Corporation

• Partnership

No more than 100 shareholders.

• Corporation

• S Corporation

• Partnership

Owner distributions are generally tax-free.

• Corporation

• S Corporation

• Partnership

A disadvantage is double taxation.

• Corporation

• S Corporation

• Partnership

Allocation of income or loss items is pro-rata.

• Corporation

• S Corporation

• Partnership

Flexibility is an advantage over the other entity types.

• Corporation

• S Corporation

• Partnership

Owner's basis is increased by partnership debt.

• Corporation

• S Corporation

• Partnership

Owners are paid wages.

• Corporation

• S Corporation

• Partnership

Owners may receive a QBI deduction.

• Corporation

• S Corporation

• Partnership