Corporate and partnership tax laws relate to the systems of income and franchise taxation used for taxing incorporated entities, LLCs, limited partnerships and other tax partnerships, including businesses and not-for-profit charities. These laws often differ from the systems for taxing individuals, and in some cases can have implications for individual taxation or the equity holders of the businesses as well. For example, S corporations and tax partnerships enjoy what is known as pass-through taxation. Therefore, the S corporation and tax partnership are not responsible for paying the income taxes, instead the obligation is reported at the entity level and in turn passed through to the shareholders or tax partners, as applicable. This distinction becomes quite relevant when the client is deciding whether to have its organization taxes as a standard C corporation or a pass-through entity.
Corporate and partnership taxes can refer to taxation systems for both state and federal level taxes. Additionally, different taxing structures may apply to corporations and tax partnerships based on their type. For example, a not-for-profit corporation engaged in charitable or religious activities may qualify for 501(c)(3) tax-exempt status. Obtaining the prized tax-exempt status often requires the assistance of a skilled lawyer and/or CPA.
Who to Contact About Corporate and Partnership Tax Law:
The corporate and partnership tax lawyers of the Firm work directly with our clients, their outside CPAs and in-house CFOs to assure the most tax efficient structure of the entities for both operations and potential M&A transactions. Firm founder H. Len Musgrove, Jr. is also a licensed CPA and brings over 35 years to this discipline.
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