Archive for the ‘Accounting Methods’ Category

How to become Incorporated

How to become Incorporated

Steps in Incorporation 1 prepare articles of incorporation 2 signing the articles by one + of the incorporators 3 filing the articles with the Secretary of State while paying the fees 4 Receive receipt from SoS 5 Holding a meeting to adopt bylaws, elect officers…   Articles of Incorporation Must have name which must include […]

Limited Liability Companies

Limited Liability Companies Wiki

Limited Liability Companies Combines nontax advantages of the corporation and the favorable tax status of partnerships Wyoming in 1977 passed first LLC statute Uniform Limited Liability Company Act of 1996 –          Provides default rules to govern in absence of contract –          Ullca is similar to rupa   Tax treatment of LLC’s May elect to be […]

Operations of Partnerships

operations of partnerships

Operations of Partnerships   Two important relationships during the operation of a partnership or Limited liability partnership Relation of the partners to each other and the partnership Relation to relying 3rd parties Duties to each other Rupa- highest degree of loyalty Good faith and fair dealing Share this post!

Forms of Businesses and Partner Formation

how to form a partnership

Forms of Businesses and Partner Formation Types of Business Sole proprietorship –          One owner –          Can go after personal assets –          Easy to form and cheap –          Default system –          Cannot be sued as a business, just person   Partnership –          2 or more owners –          Profits are equally shared –          Personally liable –          1040 […]

Agency-Principle Notes

Agent Principle Relationship

Law of Agency  What is an Agent and Principle Agency is a 2 party relationship in which the agent is authorized to act on behalf of the principal   Agency Law’s most important social function is to stimulate commercial activity   –          Rules governing the formation of the agency –          The duties the principle and […]

Section 351 Notes

economics exam answers

Section 351 transferors covered Non-recognition section Allows transferors to not recognize gain or loss realized         Section 357   Transferee assumes liabilities of transferor Example: mortgage   None of the liabilities will be treated as “boot” If transferee assumes transfer of transferor, it does not become boot At time of transfer FMV […]

Corporate Tax Rules

economics exam answers

Title 26 in USC -internal revenue code   IRS enforces the code, does not make it -Congress makes the code IRS under executive branch   3 types of treasury regulations that interpret IRC Interpretative -Treasury dpt’s interpretation of what the tax law says -not enforceable and is not law Procedural -how you have to do […]

IRS Regulations

economics tutorials

Intro to tax practice   Tax avoidance ———————————————————–tax evasion   Tax avoidance- paying minimum amount of tax legally owed by arranging transactions in a certain way   Tax evasion- intentional underpayment of a tax that is owed –          Criminal and subject to fines/jail –          Punished by regulatory bodies Board of accountancy Courts –          Evidence can […]

Acquiring and Valuing Plant, Property and Equipment

Valuing Plant, Property and Equipment

Property, plant and equipment Plant assets, fixed assets, Durable   User in operations, Long-term in nature and depreciated Physical substance   Includes: Land, buildings, equipment   Cost of Land -purchase price -closing costs such as title and fees – costs of grading, filling, clearing, removing old buildings -Liens or encumbrances – Additional improvements that have […]

Taxable Income Notes

Taxable Income | Casualty Loss Example

Prizes are taxable income Scholarships may be excluded Gifts are not taxable Inheritance is not taxable Insurance proceeds are not taxable   Legal settlements are taxable -unless due to injury or illness   Divorce No gain or loss on transfer of property Alimony is taxable and deductible Child support is not taxable   Government transfer […]