Quote:
Originally posted by theking
It is my brothers business not mine.
This is from the link that was provided by bringer.
"Corporation
A Corporation (Domestic - Articles of Incorporation/Foreign - Statement and Designation) generally is a legal entity which exists separately from its owners. While normally limiting the owners from personal liability, taxes are levied on the corporation as well as on the shareholders. The sale of stocks or bonds can generate additional capital and the longevity of the corporation can continue past the death of the owners. Legal Counsel should be consulted regarding the variety of options available for formulation."
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Just keep in mind that the government has changed the laws on how corporations work. And it's in their best interest not to allow people to create a corporation, rape it, bankrupt it, and then run with the money without repercussions. (Not saying that is what your brother is doing)
I would guess that he is a S corp. Where he is incorporated will make a difference, but like I said, The 80?s taught the government that it needs to tighten the laws on how to exact it?s pound of flesh from fledgling business.
I was 10% owner in a corporation that was sold out from under me, and the IRS was on me for 4 years about paying back employee taxes. We were a S corp. out of Delaware.