I’m studying for my Accounting class and don’t understand how to answer this. Can you help me study?

Part I – Corrections to Tax Returns (100 points total).

• Adjust and make any changes to your Corporation and LLC tax returns based on faculty feedback, if required.
• Include your finished and fully edited version for Part 1.

Part II – S Corporation Memo (100 points total).

Jones and Turner are interested in possibly changing the structure of their business to an S Corporation and would like to know more about this entity. They are excited by the fact that the S Corporation is a “flow through entity” and the fact that they don’t pay income tax.
They also heard that if they pay themselves dividends as S Corporation shareholders, they won’t have to pay any Social Security or Medicare tax (payroll taxes).

Prepare a memorandum for the business owners using a minimum of 800 words explaining the following;

• What are the requirements for structuring a business as an S Corporation?
• Discuss at least two advantages to structuring a business as an S Corporation
• Explain how income from the S Corporation taxed; include in your discussion on taxation of S Corporation income, the forms (including their names and numbers) utilized in reporting income and paying tax to the IRS.
• Finally, explain to the business owners what the requirement is for corporate officers who work in their own S Corporations.
  • How are Corporate Officers required to be compensated and why?
  • Explain both the ethical and legal issue regarding their suggestion that they be paid in dividends thus eliminating the requirement that they pay Social Security tax.

Please submit your assignment.