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Calculates the tax benefits of switching the business to a s corporation for each of the...

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Accounting

Calculates the tax benefits of switching the business to a scorporation for each of the stakeholders involved and the businessentity

For a s corporation lets say the company Is worth $100 milliondollars and $17.5 million in revenue.

Bob owns 50% of the company

Mark owns 20% of the company

Tony owns 25% but his selling his portion of the company

Steve owns 5 %

tax benefits of switching the business to a s corporation?

Answer & Explanation Solved by verified expert
4.4 Ratings (771 Votes)
S Corps are pass through entities ie they pass through their income to the owners of the S corp rather than paying tax on S Corp income Where as a C corp has to face double taxation situation    See Answer
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