Brown Company Recently Has Been Formed as a Limited Liability

question 5

Essay

Brown Company recently has been formed as a limited liability company (LLC). Brown Company is owned equally by three individuals-Gene, Susan, and Sandra-all of whom have substantial income from other sources. Brown is a manufacturing firm and expects to earn approximately $130,000 of ordinary income and $30,000 of long-term capital gain each year for the next several years. Gene will be a full-time manager and will receive a salary of $60,000 each year. What tax issues should the owners consider regarding the LLC's initial year of operations?

---

Definitions:

Russian Liberals

Russian Liberals in the 19th and early 20th centuries were individuals advocating for more political freedoms, social reforms, and a move towards a constitutional monarchy or democracy in Russia.

Tsar

The title used for the emperors of Russia before the 1917 revolution; derived from the Roman title Caesar.

Violent Repression

Violent Repression involves the forceful subjugation of opposition or dissenting voices by coercive and brutal means, often employed by authoritarian governments.

Cheka

The first of a succession of Soviet state security organizations, established in 1917, known for its role in the Red Terror during the Russian Civil War.