The officers of a corporation are responsible for hiring and overseeing the board of


Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now



Alice, Bob, Carol and Dave form Granma’s Goodies, LLC to sell their homemade candies. Alice contributes 10% of the start up capital; Bob 20%, Carol 30% and Dave 40%. They agree to divide profits equally. The LLC is member-managed by Carol and Dave. Alice and Bob invested but are not involved in running the business. The LLC earns $100,000 in Year 1 and is taxed as a pass-through. What will the LLC and the members report on their income tax returns in year 1?

  • >Bob will report $10,000 Bob $20,000; Carol $30,000; and Dave $40,000 since LLCs must divide the profit according to percentage of capital contribution. The LLC will not pay income tax.
  • >The LLC will report $100,000 and pay income tax on this amount at a flat rate of 21%. The members will not report income or pay any taxes.
  • >The LLC will not pay income tax. Each member will report $25,000 on their individual income tax return.
  • >The LLC will report $100,00 in income and pay $21,000 in income tax (at the flat rate of 21%). The members will divide the remaining $79,000 evenly and each will report $19,750 on their individual income tax.


"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"