Question 1
- In this scenario, I would advise my client to form another Limited Liability Company in line with the company regulations of this state (Watt, R. & Johns, F., 2009). This will help them to retain the initial name of their company.
- Of course, I would give the same advice I was to render it to a European Public Limited Company. The procedure will be more or less the same (Nathan, M.C., 2009).
Question 2
- I would like to advise them to partner and be taxed as one entity under the banner of their company. It is more appropriate.
- No. I would give a different advice. If only one of the partners is a foreigner, each of them should register separately at individual level. The local citizens will have different taxation rates as stipulated by the California Revenue and Tax Code (Hellerstein, J.R. & Hellerstein, W., 2005).
Question 3
- The formation of a merger between ABC and JBL later ended up after all the shares of JBL were eventually bought by ABC. The taxation implication will be that ABC as the new shareholder will have to pay a lot of taxes. JBL will not incur much taxation fees as its role diminishes with the purchase.
- Form 8832
Form 8832
Entity Classification Election
P.O. Box, Tel: Fax
Part One
- Type of election (Specify)
- Was the original entity filed within the required duration? YES. NO..
- Was the initial entity effective by the date of its formation? YES..NO
- Does the initial entity have more than one owner? YES...NO
- If YES, Specify
- Identification Numbers
- Provide the Employer Identification Number (EIN) and name for the parent organization
Consequent Statement and Signatures
References
Hellerstein, J.R. & Hellerstein, W. (2005) State and Local Taxation: Cases and Materials.
Minnesota: West Publishers.
Nathan, M.C. (2009) Codification and the Rise of the Restatement Movement, 54 Wash. L. Rev.
239, 260.
Watt, R. & Johns, F. (2009). Concise Legal Research. Washington: Federation Press.
