Instructional Objectives for this activity: Summarize the types of business enti
ID: 1096388 • Letter: I
Question
Instructional Objectives for this activity:
Summarize the types of business entities and describe the legal characteristics of proprietorships and partnerships.
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.
This individual work should include the following:
An in-depth submission that should be free of spelling and grammar errors.
An essay containing a minimum of 200 words.
Explanation / Answer
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.
They can elect to be treated as an S corporation. An S corporation allows pass through of taxes to avoid the double taxation.