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Kimberly Pinchbeck Commissioner of Accounts  Form

Kimberly Pinchbeck Commissioner of Accounts Form

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for tax purposes a corporation is generally treated as a standalone entity and taxed for its activities but a corporation may act as someone else's agent becoming a non-taxable extension of the principal what determines whether a corporation is acting as a taxable Standalone entity or is someone's non-taxable agent the United States Supreme Court explored this question in Commissioner versus Bollinger Jesse Bollinger was part of multiple Partnerships that developed apartment complexes in Lexington Kentucky Bollinger created a corporation named Creekside Incorporated where the sole purpose of being the Partnerships agent in financing deals Creekside had no assets and Bollinger was the only shareholder under Kentucky's usury laws lenders could charge High interest rates only if the borrower was a corporation and lenders would Finance creekside's apartment complexes only if they could charge those High rates fully aware of the agency relationship the lender

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