T A X Matry Sagatori Professor Dodini May 10, 2001 Research Project Questions to Answer: 1. An S Corporation is a small business corporation that elects to be taxed in a way that is similar to the way that partnerships are taxed. There can only be one class of stock in an S Corporation and it has to be a domestic corporation. Path: Federal Taxes - Primary Sources - Internal Revenue Code - Subtitle A -- Income Taxes …showed first 75 words of 690 total…

…showed last 75 words of 690 total…the corporate rate. The C Corporation pays income tax if it makes a profit. The owners of a C Corporation are not taxed for the corporation. 10. Yes all distributions from the corporation are taxable. There is a dividend distribution which is taxable and recorded on a Schedule B. There is a dissolution distribution which is taxable one Schedule 4797. This is taxed only if it goes over the basis of which you bought it. ------------------------------------------------------------------------ **Bibliography**