Answer:
(a). benefit of corporate structure in a foreign base entities are:
1. the profit and loss allocation are flexible
2.restriction is limited to types of owners
3. tax is minima
(b). a foreign base limited liability company (LLC) can avoid double taxation by partnering with the country citizen either thruough company or individual
Explanation:
(a). benefit of corporate structure in a foreign base entities are:
1. the profit and loss allocation are flexible: a corporate structure is a organization structure that comprises of different units and level aim at achieving a common goal for the company.
for a LLC to survive in a foreign based country, the organization chart must be corporate because the profit and losses is determined by the respective department working on the audit.
2.restriction is limited to types of owners: foreign entity operate in such a way that each department in a corporate structure exihibits its own power and control over its unit thereby giving the owners certain restriction.
3. tax is minima: the citizen of that foreign country will allow to treat the dividend of tax in a favorable manner.
(b).
double taxation focus is on impact of taxes on income of an organization taxed from two different source country (source rule and resident rule: country of residence and country of source of the organization)
a foreign base limited liability can avoid double taxation by partnering with the country citizen either through company or individual. By doing this, the citizen of that foreign country will allow to treat the dividend in a favorable manner.
