BLW 1002 Lecture Notes - Lecture 16: United Progressive Alliance

• School: St. John's University
• Department: BLW - BUSINESS LAW
• Course: BLW 1002
• Professor: Sabino

Document Summary

Complicated, full of loopholes: decrease amount of taxes paid available to partnerships but no corporations, corporations face double taxes on corporate income. Then the businesses are left without any tax benefits and no economic benefit. Do(cid:374)"t pa(cid:455) dou(cid:271)le ta(cid:454)es: one partner passes income onto other partner, and partner pays taxes on that, pay tax on profit only once. Have unlimited personal liability: o(cid:373)e people (cid:271)elie(cid:448)e it"s (cid:449)orth the risk of personal liability because they save money on taxes. Five-step test: a(cid:374) asso(cid:272)iatio(cid:374) , of t(cid:449)o or (cid:373)ore perso(cid:374)s , a(cid:272)ti(cid:374)g as (cid:272)o-o(cid:449)(cid:374)ers of propert(cid:455) , i(cid:374) a (cid:271)usi(cid:374)ess , for profit. *if (cid:455)ou"re (cid:373)issi(cid:374)g a(cid:374)(cid:455) o(cid:374)e step/ele(cid:373)e(cid:374)t, the (cid:271)usi(cid:374)ess is (cid:374)ot a part(cid:374)ership* Step 1: an association: to associate with people. Individuals and corporations can form partnerships: corporations and corporations can form partnerships, partnerships and other partnerships can form another partnership.