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Taxpayers Guide to LLCs and S Corps
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By Jason Watson, CPA
Posted Tuesday, July 6, 2021
Using the same example above, the two insurance agents could simplify life by entering into a joint venture agreement that allowed for revenue and expense sharing, without the formality of the business entity structure above.
Be careful here however! The IRS could impute that this is a partnership and demand a partnership tax return. Not much more will be said here since WCG is not a huge fan of joint ventures in this fashion, and most attorneys say it is very expensive to draft the necessary agreements. Automobile manufacturers have the budget to enter into joint ventures, and also have a myriad of highly visible problems (brand, employee groups, regulations, etc.).
Taxpayer's Comprehensive Guide to LLCs and S Corps 2021-2022 Edition
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