Different Forms of Business Organizations

Assume you are a tax practitioner, and Ms. Smith is your client. Ms. Smith, who is establishing her own law practice, needs advice about the tax implications of the various forms of business organization including sole proprietorship, partnership, and corporations (including S corporations). Ms. Smith wants you to explain the key tax advantages and disadvantages of each form of organization.

Instructions:

Write a four-to-five-page paper on the different forms of business organizations. The paper should address the following:

Define and summarize the sole proprietorship form of business organization – include a link to the

IRS page

where the client can review this specific information.

Define and summarize the partnership form of business organization – include a link to the IRS page where the client can review this specific information.

Define and summarize the S form of a corporation – include a link to the IRS page where the client can review this specific information.

Identify at least three questions to ask Ms. Smith to help her decide which organizational form is preferable.