REG mod 25c Flashcards
What is the requirement related to the name of a Limited Liability Company?
The name of the company must indicate that it is a Limited Liability Company.
What information is presented on schedule M-1?
This schedule shows the reconciliation between book income and taxable income.
What must be filed with the state in order to form a Joint Venture?
Nothing is required to be filed with the state to form a Joint Venture.
What percent of shareholders must consent to become an S Corporation?
100%
Are partners, in a general partnership, personally liable for the liabilities of the partnership?
Yes. The partners of a general partnership have unlimited personal liability.
Only general partners in a limited partnership are permitted to review the books and records of the limited partnership. True / False
False. The limited partners also have the right to review the books and records.
Are all directors of a corporation are required to receive compensation for their service?
No, directors receive compensation only if it is stated in the Articles of Incorporation, the bylaws, or if voted on by the board. There is no requirement that they receive compensation.
Which members of a Limited Liability Company have unlimited liability?
None. All members of an LLC have limited liability.
Partnerships must record a gain / loss when a distribution is made to a partner. True / False
False. The partnership does not record any gain or loss related to a distribution to a partner.
All partners in a limited partnership owe a fiduciary duty to the Limited Partnership. True / False
False, only the general partner(s) have a fiduciary duty.
The losses and deductions of a shareholder are limited to_______.
(a) The shareholder’s stock basis (b) The shareholder’s at-risk basis (c) The passive activity loss limitations
Who creates a corporation’s bylaws?
The board of directors
Name the three types of partnership income.
Ordinary, portfolio, and passive
Under what circumstances is a written partnership agreement required?
A partnership, wherein the partners have an agreement that the partnership will last for more than one year. This is due to the Statute of Frauds.
What information is necessary when calculating the income distributions for the partners?
The partnership agreement is necessary, as it will describe how income and losses are shared among the partners.
