WorksheetsBusiness Structures - S Corp and LLC
Total questions: 10
Worksheet time: 5mins
What is the main advantage of a Corporation over a Sole Proprietorship or Partnership?
Board of Directors
They can sell shares of the company
Limited Liability
Tax treatment by the IRS
What is the main advantage of a Sole Proprietorship over a Corporation?
No Double Taxation
Name recognition
Liability
Decision-making
If a corporation is sued, who is liable for damages?
The corporate entity itself and the Board of Directors
The corporate entity itself and the Shareholders
Top management and the Board of Directors
The corporate entity only
What are the restrictions of an "S" Corporation?
The shareholders have to pay taxes if they receive a salary
Only U.S. Citizens living in the U.S. can be shareholders
Only 100 Shareholders are allowed
All of the above
The S Corporation is the most popular form of business structure in the U.S.
True
False
What is true for C Corporations but not for S Corporations?
Company is taxed as a separate entity
No double taxation
Only 100 shareholders are allowed
Requires a Board of Directors
What is true for both C Corporations and S Corporations?
Both provide Limited Liability for Shareholders
Both require Shareholders to pay personal income tax on corporate salaries
Both are separate legal entities
1 and 2 above
1, 2 and 3 above
LLC stands for:
Limited Liability Corporation
Limited Liability Company
Both 1 and 2 above
None of the Above
An LLC can begin its operation with a minimum of how many "members"?
100
2 or more
one
10
A key difference between LLC's and S Corporations is the maximum number of shareholders is limited to 100 in S Corporations but there is no maximum limit in LLC's.
True
False
