LEB 323 Lecture Notes - Lecture 1: Double Taxation, Limited Partnership, General Partnership
14 Jul 2019
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Document Summary
Business entities exist to reduce taxes and liability: when a business pays for something, it reduces taxable income; when employee pays, it is after income is taxed. Entities: general partnership: each partner is potentially personally liable for the obligations of the partnership, protect against individual liability for partnership losses by purchasing insurance. Corporations: substantial protection from liability for firm debts, often face double taxation corporation pays corporate income tax on firm income and then shareholders pay individual income taxes on dividends paid out on that income to the shareholders.
