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Running Head: Business entity c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c
Business Entity: Milestone One Memorandum –
Business entity c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c 2
Subject: Recommendation for ideal business entity type
A. Justification for choosing the recommended taxable entity
On the basis of the tax research that has been conducted, the most viable business entity option for
Bob Jones a partnership form is of business. In a partnership, two or more individuals combine
their resources order in to carry out business activities. choosing this business type Bob and By
his daughter Mandy would be able share the risks well profits and loss of the newly to as as es
formed business. Based on the business type, the tax would be computed personal as tax, and they
would have to pay the tax only once on the income. Based on the Internal Revenue Service (IRS),
a partnership entity has to have to file an annual information return for reporting the income along
with deductions, losses and gains (Partnerships: Internal Revenue Service). Form W-2 would be
issued, and the partnership would have to furnish copies relating Schedule K-1 the to to partner.
B. Accounting Method c
The accounting method that would be applicable to the partnership business give can rise to a host
of advantages for the new entity. The accrual method of accounting would be adopted, which
would ensure that the company record the income, regardless of when the actual cash can is
