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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9886
Experience:  30 years of corporate, litigation and international law
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Northwest Brands, Inc., is a small business incorporated in

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Northwest Brands, Inc., is a small business incorporated in Minnesota. It's one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation?

bizlaw :

If all the shareholders are natural persons, US citizens or permanent residents of the US or estates, the simplest solution is to make a subchapter S election. This allows all profits to be taxed at the shareholder level like a partnership. You make the election on an IRS form and there should be a similar form for state taxes.


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Customer:

thanks. This helps in my applied business law class.

Customer:

thanks this helps in my applied business law class

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