Question and answer
Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.
They can avoid double taxation by checking the box on the foreign corporation, via Form 8832, [ electing to be classified as a partnership status.(preferably an LLC or an S-Corporation the effect is the same) Thus all income/losses will flow through to the shareholders/members and will not be taxed at the "Corporate/Partnership" level. The shareholders/members will report their proportionate
share of income/gains/losses on thier individual income tax returns and be subject to taxation. There is an issue if the corporation has built in gains. When the corporation checks to partnership it is considered to have been liquidated.If the there are gains inside the corporation at liquidation then the corporation will pay tax at the highest marginal rate. Read more: Northwest Brands, Inc., is a small business incorporated in - JustAnswer ]
Ask a question
Not a good answer? Get an answer now. (FREE)
Original conversation
User: Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.

Weegy: They can avoid double taxation by checking the box on the foreign corporation, via Form 8832, [ electing to be classified as a partnership status.(preferably an LLC or an S-Corporation the effect is the same) Thus all income/losses will flow through to the shareholders/members and will not be taxed at the "Corporate/Partnership" level. The shareholders/members will report their proportionate share of income/gains/losses on thier individual income tax returns and be subject to taxation. There is an issue if the corporation has built in gains. When the corporation checks to partnership it is considered to have been liquidated.If the there are gains inside the corporation at liquidation then the corporation will pay tax at the highest marginal rate. Read more: Northwest Brands, Inc., is a small business incorporated in - JustAnswer ]
bongche|Points 2061|

User: You are interested in buying a new car and Bob let's you borrow one of the new cars on his lot for a week to test drive. You decide you like the car and when you visit Bob to drop off the car, he hands you the following document and a pen: May 1, 201x I promise to pay to the order of Bob's Auto Emporium $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum. What type of instrument is this? Assuming an on-screen item otherwise qualifies, does this instrument meet the requirements for negotiability under the UCC?





Weegy: This is a promissory note. It may not be valid for lacking a last name. If it weren't for that it is probably legally valid. Oh, and another thing- it lacks a date for when the money has to be paid. [ Therefore I think the note is NOT valid. ]
Expert answered|thewolf010|Points 810|

Question
Asked 5/28/2012 8:33:49 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Northwest Brands, Inc., is a small business incorporated in Minnesota. It's one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.
Weegy: They can avoid double taxation by checking the box on the foreign corporation, via Form 8832, [ electing to be classified as a partnership status.(preferably an LLC or an S-Corporation the effect is the same) Thus all income/losses will flow through to the shareholders/members and will not be taxed at the "Corporate/Partnership" level. The shareholders/members will report their proportionate share of income/gains/losses on thier ... (More)
Question
All Categories|No Subcategories|Expert Answered
Asked 5/28/2012 8:24:44 PM
0 Answers/Comments
Home | Contact | Terms | Privacy | Social | ©2013 Purple Inc.
Ad
Popular Conversations
which life stage does nutritional issue might cause the most problems ...
Weegy: Malnutrition is a common problem in cancer patients that has been relief from nutrition impact symptoms and ...
4/19/2014 1:18:55 AM| 5 Answers
Pax Romana lasted from the reign of
Weegy: Pax Romana lasted from the reign of: Marcus Aurelius.
4/19/2014 4:45:15 PM| 3 Answers
ODBS stands for ______ a. Offline database connection b. Oriented ...
Weegy: ODBS stands for - c. Open database connection
4/20/2014 10:16:42 AM| 3 Answers
Energy from sunlight is harmful to our skin.
4/19/2014 4:02:26 AM| 2 Answers
Helen's sign for her mother was touching her hand to her
Weegy: forehead User: The students at Perkins Institute sent Helen a(n): Weegy: The students at Perkins Institute ...
4/19/2014 7:05:08 AM| 2 Answers
(3+ (6)) (6+ 5)=
Weegy: (3+6)(6+5) 9 + 11 = 20
4/19/2014 8:54:53 AM| 2 Answers
( 7- 10)2- 630
4/19/2014 12:22:32 PM| 2 Answers
As temperature increases, the speed of ...
Weegy: No, it decreases because when temperature is low water is present in atmosphere which let sound to go fast
4/19/2014 1:04:54 PM| 2 Answers
Weegy Stuff
S
L
P
C
L
P
C
Points 1591 [Total 6978]| Ratings 0| Comments 1591| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
Points 1458 [Total 9339]| Ratings 0| Comments 1458| Invitations 0|Online
S
1
L
1
L
P
Points 496 [Total 7173]| Ratings 1| Comments 486| Invitations 0|Offline
S
L
Points 429 [Total 2876]| Ratings 2| Comments 399| Invitations 1|Offline
S
L
1
1
1
Points 180 [Total 3446]| Ratings 7| Comments 110| Invitations 0|Online
S
R
Points 178 [Total 290]| Ratings 5| Comments 108| Invitations 2|Offline
S
Points 163 [Total 579]| Ratings 0| Comments 163| Invitations 0|Offline
S
Points 157 [Total 157]| Ratings 6| Comments 77| Invitations 2|Offline
S
1
Points 154 [Total 484]| Ratings 3| Comments 124| Invitations 0|Offline
S
Points 141 [Total 785]| Ratings 1| Comments 131| Invitations 0|Offline