Survey Financial Planning Ch 14
Terms
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- General Partnership
- Type of business entity owned entirely by general partners, each of whom can act on behalf of the partnership
- Limited Partnership
- Limited partners are not allowed to participate in management of operations but generally are allowed to vote on major changed affecting the structure of the partnership
- Flow-through entity
- A type of business entity in which the results of business operations are reported directly on the owners income tax return.
- Family limited partnership
- A limited partnership of family members that is used to generate valuation discounts for estate and gift tax purposes on the transfer of the limited interest in the partnership
- C Corporation
- Business entity created by state law that is separate and distinct from its shareholders
- Dividends-received deduction
- Deduction for dividends received by one corporation from another corporation. The amount of DRD is based on the percentage owned by the corporation receiving the dividend.
- Double Taxation of Dividends
- Taxation of income at the corporate level and subsequent taxation of dividend distributions at the individual shareholder's level.
- S Corporation
- Special type of corporation formed under state law like a regular corporation, but for income tax purposes it is treated similar to a partnership
- Limited Liability Company (LLC)
- owners are reffered to as members. They can be individuals, partnerships, trusts, corp's or other LLC's
- Taxation of LLC
- LLC with 2 or more owners is usually treated as a partnership for federal income tax purposes. If LLC has 1 member it can be treated as a sole proprietorship.