In a concise, well written essay (do not use bullet points - write out your answers in paragraph form):
Compare and contrast the differences and similarities in C Corporations, Partnerships, LLCs and S Corporations.
Include in your essay a discussion of the following:
List the advantages and disadvantages of each entity, including both tax and non-tax considerations
Tax treatment of property contributions from the shareholder/member/partner to the entity upon formation including a discussion of the basis the entity would take in the contributed property and the basis the shareholder/member/owner would have in the entity as a result of the contribution.
Are there differences between the entities? Why?
Tax treatment of cash and property distributions/dividends to a shareholder/member/partner. Include a discussion of the basis the shareholder/member/partner would take in the distributed property and whether the property distribution would result in gain or loss recognition.
What are E&P and AAA and what is the purpose of those calculations.
Which entities are taxed at the entity level and which offer flow through taxation? How are income and losses aggregated when they flow through to the shareholder/member/partner and why is this important? How does this affect the shareholder/member/partner’s basis in the entity (if at all)?
Explain the purpose of the built in gains tax and when it applies.