Ask Question
BusinessBusiness
30 December, 21:43

The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions are divided by the percentage of individual interest each partner has in the company. This is an example of a benefit enjoyed by which type of organization?

+3
Answers (1)
  1. 31 December, 00:20
    0
    Answer: The Limited Liability Company enjoys this benefit.

    Explanation:

    A Limited Liability Company is a hybrid organization that combines the features of a corporation with those of a partnership or sole proprietorship.

    The credits and deductions of the company are passed through to partners to file on their individual tax returns.

    Credits and deductions are divided by the percentage of individual interest each partner has in the company.

    Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses are "passed through" the business to each member. LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The common stock of Royal Ranch House is selling for $20.23. The firm pays dividends that are expected to grow at a rate of 4.40% indefinitely. Your investment horizon is 9 years.
Answers (1)
1. Kevin has shares with General Electric. He has been keeping track of the ticker. The previous day's close observed the following ticker: GE13K75.34/blacktriangle0.23 What does the black triangle symbol indicate? a.
Answers (1)
What document is used to make adjustments to an existing sales contract?
Answers (1)
What aspect of new technology is of the most interest to sociologists?
Answers (1)
A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.
Answers (1)
New Questions in Business
Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adonis received $206,948 in cash proceeds. Which of the following statements is true? A.
Answers (1)
Which type of group leadership has a communication pattern that flows from the top down?
Answers (1)
Without trade, the farmer produced and consumed 2 pounds of pork and 4 pounds of tomatoes and the rancher produced and consumed 4 pounds of pork and 2 pounds of tomatoes.
Answers (1)
On March 14, Zest Co. accepted a 120-day, 6% note in the amount of $5,000 from AZC Co., a customer. On the due date of the note, AZC dishonors the note and fails to pay.
Answers (1)
A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of a.
Answers (1)
Home » Business » The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions are divided by the percentage of individual interest each partner has in the company.
Sign Up Forgot Password?