Examlex

Solved

Your Client Has Operated a Sole Proprietorship for Several Years

question 79

Essay

Your client has operated a sole proprietorship for several years, and is now interested in raising capital for expansion. He is considering forming either a C corporation or an LLC.
a. Describe the treatment of an LLC and discuss any advantages the LLC offers over the C corporation.
b. Assume instead the client has previously operated as a C corporation. Describe the tax consequences of converting to an LLC.


Definitions:

Fresh Farm LLC

A company likely involved in agriculture, specifically in producing and possibly selling fresh farm products.

Identification

In a sale of goods, the express designation of the specific goods provided for in the contract.

Buyer

An individual or entity that acquires goods or services in exchange for money.

Lessee

A person who pays for the use or possession of another’s property.

Related Questions