1. Business Entity Paper
... aunts the corp rate could be less then their personal rate. Since the aunts want income each year then we could form a C corp and have common and preferred stock. The aunts get preferred stock which pays a dividend income which is taxed differently then ordinary income. The boys take common and do not receive a dividend because they want most of the money to ... control. The agreement should also include a repurchase agreement that binds the aunts estate. This could be done in and S or a C corp. To grow the company the boys can issue more stock to outside investor. A C corp makes this e...
- Word Count: 791
- Approx Pages: 3
- Grade Level: High School