bob poeschl

By Bob Poeschl, EA

IN THIS SERIES OF ARTICLES WE WILL LOOK AT THE FOLLOWING ENTITIES THAT THE IRS RECOGNIZES FOR TAX PURPOSES.

SOLE PROPRIETORS
SINGLE MEMBER LLC’S
PARTNERSHIPS
MULTIPLE INDIVIDUAL LLC’S
CORPORATIONS “C” AND “S” TYPE
TRUSTS
ESTATES

DEFINITION OF A SOLE PROPRIETOR

1. AN INDIVIDUAL OPERATING A BUSINESS. THIS COULD INCLUDE A HUSBAND AND WIFE. MARRIED COUPLES ARE NOT CONSIDERED PARTNERS AND ARE NOT TREATED AS PARTNERS UNLESS THEY ARE NOT IN A COMMUNITY PROPERTY STATE AND/OR THEY FILE MARRIED FILING SEPARATE RETURNS.

By: Bob Poeschl, EA

IN GENERAL A CORPORATION IS DEFINED AS A PERSON OR GROUP OF PEOPLE WHO INCORPORATE BY RECEIVING A CHARTER FROM THEIR SECRETARY OF STATE, THIS INCLUDES JOINT STOCK COMPANIES, INSURANCE COMPANIES (REQUIRED TO BE CORPORATIONS) AND TRUSTS AND PARTNERSHIPS THAT OPERATE AS ASSOCIATIONS OR CORPORATIONS. WE WILL ALSO DISCUSS LLC’S THAT MEET THE DEFINITION OF OR HAVE ELECTED TO BE TAXED AS CORPORATIONS.

CORPORATIONS HAVE TWO MASTERS. THEY ARE