The answer to the question given above about, forming cooperation that would result in double taxation is Yes, double tax problem would arise.
Yes, Forming cooperation would result in Wendall and Shirley with double taxation, as shareholders would likewise be forced to pay taxes on dividends and the cooperation would be required to pay taxes on its profits.
A company, often known as a C corp, exists in law independently from its owners. Corporations can make money, pay taxes, and deal with legal repercussions.
Although founding cooperation is more expensive than creating other forms of companies, it offers owners the strongest defence against personal liability. A C corp also needs to report, operate, and maintain records in more detail.
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