TAX 9869 Lecture 3: 3
Document Summary
Corporation in us is a taxpaying entity ~ it pays tax on its income. Income earned at dre/pship (doest pay tax) flows up to partners that pay tax. Branch is not a legal entity but its income flows up to the owner as well! Dre is truly disregarded, it does not exist for us tax purposes. As a us person can make election to treat entity differently than what its treated as for local country purposes. Entity classification is important b/c it dictates how entities are taxed. However when it comes to corps they are blockers. Nonus entities should have same type of trmt: generally be treated as us oorp. Nonus corp should block any income nonus corp earned. Bc the corp is a corp, entity of itself even though its a uk corp and has successful biz in uk (it will pay. Uk tax but no reason that individual should pay any tax on that income)
