Business Entities

Question 1

Sole Proprietorship: Liability

Answer 1

Unlimited

Question 2

Sole Prop. Tax Form

Answer 2

1040

Schedule C

Question 3

Sole Prop. Concept

Answer 3

Individual

Question 4

Sole Prop. Owner’s Comp Tax Form

Answer 4

1040

Schedule C

Question 5

Sole Prop. Nature of Income

Answer 5

Self employed

Question 6

Sole Prop. Income for determining Retirement Plan Contributions

Answer 6

Net Schedule C income

– deductible SE tax

Question 7

Partnership Liability

Answer 7

GP: Unlimited

LP: Limited

Question 8

Partnership concept

Answer 8

Flow-through/conduit

Question 9

Partnership Tax Form

Answer 9

1065

Question 10

Partnership Owner Comp Form

Answer 10

K-1

Question 11

Partnership nature of income

Answer 11

Self-employed

Question 12

Partnership Income for determining Retirement Plan Contributions

Answer 12

Net Schedule C income

– deductible SE tax

Question 13

LLC Liability

Answer 13

Limited

Question 14

LLC Tax forms

Answer 14

Form 1040, Schedule C

or Form 1065

or Form 1120

or Form 1120S

Question 15

LLC Concept

Answer 15

Can be any

Question 16

LLC Owner Comp Form

Answer 16

Form 1040, Schedule C,

or Schedule K-1,

or Form W-2 and Schedule K-1,

or W-2

Question 17

Corps and S-Corp Liability

Answer 17

Limited

Question 18

Corps and S-Corp Tax Forms

Answer 18

1120

or 1120 S

Question 19

Corp and S-Corp Concept

Answer 19

Entity

Flow-through/conduit

Question 20

Corp Owner’s Comp Forms

Answer 20

W-2

Dividends on 1099-DIV

Question 21

S-Corp Owner’s Comp Form

Answer 21

W-2 and K-1

Question 22

Corp and S-Corp: Nature of Owner’s Income

Answer 22

W-2 and Dividend

W-2 and Ordinary

Question 23

C-Corp and S-Corp Income used for determining retirement contributions

Answer 23

W-2

Question 24

S-Corp may include non-US citizens

Answer 24

Yes

Question 25

S-corp election deadline.

Answer 25

15th of 3rd month of current tax year.

Extensions permitted if reasonable cause

Question 26

Special taxes for S-corp

Answer 26

1. Built-in gains tax
2. LIFO recapture tax
3. Excess net passive income tax

All paid by S-corp, not by shareholders!