This sets out rules that govern how profits and losses will be split up, how major business decisions will be made, and the procedures for handling the departure and addition of members.
What is an operating agreement?
100
This type of taxation allows income to pass through the business to the individual tax return.
What is "pass-through" taxation?
100
Group term-life, medical reimbursement plans, stock purchase, option, and incentive plans.
What are fringe benefits?
100
The process by which a company (or part of a company) is brought to the end, and assets and property of the company are redistributed.
What is liquidation?
200
No more than 100 shareholders are permitted.
What is an S-Corp?
200
It's also known as a "certificate of organization" or a "certificate of formation."
What is articles of incorporation?
200
The founders of an S-corp must elect to be taxed under this:
What is subchapter S of the IRS Code?
200
Social Security and Medicare Taxes
What is FICA?
200
A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
What is an entrepreneur?
300
This business form is known for limited liability and pass-through taxation; and is particularly beneficial for smaller, privately held businesses.
What is LLC?
300
This is where you file formal articles of incorporation papers.
What is secretary of state?
300
When a corporation generates profit after salaries have been paid, the remaining funds will be taxable as this:
What are distributions?
300
Syndicate, group, pool, joint venture
What is a partnership?
300
Income is taxed when earned, and then taxed a second time when distributed to shareholders, either as a dividend or liquidating distribution.
What is double taxation?
400
This business form is appealing to venture capitalists.
What is a C-Corp?
400
C corporations basic requirements for operating the business.
What are bylaws?
400
Electing S Corp tax status may cut your (BLANK) tax bill.
What is self-employment tax?
400
A company is said to be this ____, when its capital is made up of a much greater proportion of debt than equity.
What is thinly capitalized?
400
Most major decisions of a c corp are in the hands of:
What is independent board of directors?
500
This business form that loses its status as (BLANK) cannot reelect it for 5 years.
What is S-Corp? (or LLC)
500
Corporations and LLCs must file their organizational documents before they file for this tax ID.
What is Federal Employer Identification Number (FEIN)?
500
Tax flow-through entities such as partnerships, S-corp, LLC allow owners to deduct this from their taxable income.
What are losses?
500
In a limited partnership, this person is only an investor and does not participate in management.
What is a limited partner?
500
Disregarding the corporate form and making shareholders personally liable for the corporation's obligations.