The business and the owner are one and the same. The business does not exist without the owner and the business is not a separate entity. All business liabilities belong to the owner and the owner undertakes all risks.

whose members” or owners are generally treated as self-employed for tax purposes

employees of the corporation or they can elect to take their earnings as dividends. However, 2%+ shareholders and their direct descendants cannot take advantage of many of the fringe benefits offered to other employees of a corporation.

Separate business entity. Shareholders can be considered employees of this separate entity. The shareholders invest in the company and transfer many of the liabilities to the separate entity. File tax returns, Form 1120, each tax year

Payments for the services of a child under the age of 18 who works for his/her parent in a sole proprietorship are not subject to Social Security or Medicare (FICA). These payments are not subject to Federal Unemployment Taxes (FUTA) until the child

quite similar to a Sole Proprietor in that, when an individual hires domestic help, all wages along with Social Security and Medicare taxes must be reported with the individual’s 1040, on Schedule H. The employer must pay both the employee and employ

Relationship between 2 or more who join together to carry on business. They share, based on their investment in the business, percentages of the profits and losses that result from their business activities. A partnership is not a taxable entity, e

The wages for the services subject to income tax withholding, Social Security and Medicare taxes. These wages are not subject to FUTA.

Income minus cost of goods sold, expenses and taxes for an accounting period.

independent contractor, a member of a partnership, or is otherwise in business for him/herself.

Teachers: Create FREE classroom games with your questions Click for more info!
©2007-2024 Review Game Zone | About | Privacy | Contact | Terms | Site Map