Thus, to the extent that earnings are distributed to shareholders as dividends, there is a double tax on earnings at the corporate and shareholder level. S corporations and LLCs are pass-through entities which are not subject to the double tax. The ownership of a shareholder in a corporation. Any twelve-month period used by a business as its fiscal accounting period. A number given to a corporation or other business entity by the federal government for tax purposes.
Banks generally require a tax identification number to open bank accounts.
A corporation is referred to as a foreign corporation in all states except for the state where it is incorporated. If a corporation conducts business in a state other than where it was incorporated, it must register for a certificate of authority to transact business in the other state or possibly lose access to that state's courts and face fines. Franchise Tax Is a tax on the privilege of carrying on business in the corporate or LLC form in a state. The value of the franchise tax may be measured by amount of earnings, total value of capital or stock, or by amount of business done. A corporation that has no other function except owning other corporations.