Alan Waung, a Hong Kong businessperson purchased a gold course in Saginaw, Michi

Question

Alan Waung, a Hong Kong businessperson purchased a gold course in Saginaw, Michigan, as an investment. As an avid golfer, Alan anticipates spending several weeks during the year at his “Northern Pines” course. He has been informed that a Subchapter S corporation would allow him and his family-member shareholders to be treated as partners for U.S tax purposes while retaining the limited liability of the corporate form. Advise Mr. Waung on this matter. What form of business organization would you recommend?

Explanation / Answer

Alan Waung can form a corporation by combining the benefits of the LLC and the S corporation and it will be the best form of business organization as he can be benefited from both forms and he have make an election with the IRS using Form 2553 for S corporation. The others benefits are -

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