Is it correct that justin will be taxed like individual now

Assignment Help Financial Management

Reference no: EM131491279

Justin's firm has been a corporation since its inception and is now an S corporation. He was excited about becoming an S corporation until he found out he is taxed just like an individual.

On the basis of the above scenario, answer the following questions:

Is it correct that Justin will be taxed like an individual now? Why or why not?

Justin says he can raise more capital as an S corporation? Is he correct? Why or why not?

Justin believes the management of an S corporation is structured just like that of a corporation. Is he correct? Why or why not?

Justin wants to go back to being a corporation. Can he do so? Why or why not?

If Justin wishes to change his status, must all of the shareholders agree? Why or why not?

An S corporation is similar to a C corporation. However, it cannot issue common stock.

Discuss why it is so. Justify your response with the help of reasoning and examples.

Reference no: EM131491279

Questions Cloud

Dora is thinking about investing in a risky asset : Dora is thinking about investing in a risky asset....

Calculate the monthly payments and total cost for bank loan : Calculate the monthly payments and total cost for a bank loan assuming a? one-year repayment period and 14 percent interest

Film-based mammography equipment with new digital models : Topping Medical Center, a for-profit institution, wants to replace its film-based mammography equipment with new digital models.

What is the basic determinant of trans and asset for money : What is the basic determinant of the trans D and asset D for money? How is equilibrium in money market determined?

Is it correct that justin will be taxed like individual now : Is it correct that Justin will be taxed like an individual now? Why or why not?

Cheapest source of financing for hand-to-mouth : Which alternative is the cheapest source of financing for Hand-to-Mouth? It is alternative . (fill in "A", "B", or "C" without quotes)

New beta if they changed to using capital structure : Find the new beta if they changed to using a capital structure that used 30% debt and 70% equity. The tax rate is 35%.

Find the present value of the annuity : On the basis of an interest rate of 5 percentage per half-year, find the present value of the annuity.

Prepare for retirement : Your friend wants to prepare for his retirement. How much should be the value of his investment at age 50?

User Account

All Pages