The Choice of a Flow-Through Entity for a Closely Held

question 38

Short Answer

The choice of a flow-through entity for a closely held corporation often is between a(n) (a Federal tax entity) and a(n) (a state tax entity).

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Definitions:

Specific Language

Precise and clear language that explicitly states or describes something without ambiguity.

Article 2

A section of the Uniform Commercial Code (UCC) that governs the sale of goods, providing a framework for transactions and specifying obligations of buyers and sellers.

Unenforceable

Describing a contract or agreement that cannot be legally enforced or compelled in a court of law.

Article 2A

A provision within the Uniform Commercial Code that governs the leasing of personal property in the United States.