Does anybody know the main differences between a C Corp. and Partnership formation?
- Generally they both don't result in gain or loss.
- Services rendered are taxed by fair market value
- Both recognize gain when the amount of Liability Relieved by contributor is larger than the amount of property basis contributed. (BUT! Partnership interest % must be applied and partners share the Liablity which affects the basis when two or more partners are contributing)
These are the situations that I know of, and the only difference I know is the Liability Relieved by Partners are shared with other partners when contributing to form a partnership whereas forming a C Corp does not do that.