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ESA SNAP Policy Manual 320 Table 25.5.b. Self-Employment Business Structure
Sole Proprietorship Partnerships LLC Corporations General Partnership Limited Partnerships S Corporation C Corporation Nonprofit Corporation Ownership and liability All income and assets are owned by and available to sole proprietor Partners share income and assets, as defined in partnership agreement Partners share income, assets and losses, as defined in partnership agreement Members share income and assets, as defined in the LLC agreement; members have limited liability in business losses Income, losses and deductions are passed through to shareholders Assets are owned by the corporation and not the individual; shareholders may receive wages in addition to distributions The CEO of a nonprofit may receive a salary, distributions of excess income and other compensation Income Self-employment (SE): allow deductions SE: allow deductions General partner: SE income Limited partner: may be unearned income Refer to tax structure; 1065: SE income; allow share of deductions 1120: Distributions: Unearned Actual wages: Earned Wages: earned
Distributions: unearned
Value of nonmonetary compensation in distributions: unearned Wages: earned
Distributions: unearned
Value of nonmonetary compensation in distributions: unearned Wages: earned
Distributions: unearned
Value of nonmonetary compensation in distributions: unearned IRS forms used 1040 Schedule C or Schedule F 1065 (partnership) 1040 (individual) 1065 (partnership) 1040 (individual) 1040 with C or F schedules (sole proprietor) 1065 (partnership) 1120 (corporation) 1120 S 1040 1120 Tax returns are public documents; 1040 for CEO Licensing: supporting documentation of business structure Licensed with DLCP Licensed with DLCP Partnership agreement filed with DLCP LLC agreement filed with DLCP Incorporation documents filed with DLCP Incorporation documents filed with DLCP May be registered CEO = chief executive officer; DLCP = Department of Licensing and Consumer Protection ; IRS = Internal Revenue Service; LLC = limited liability company
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