How Many Owners Do I Need For a Business Structure of Tutoring Service?

How Many Owners Do I Need For a Business Structure of Tutoring Service?A common question is how many owners and directors of a tutoring service must there be for it to be classified as a corporation? According to the US tax code, in order for a business to be classified as a C corporation, the entity has to have three or more owners. Therefore, at least three people have to be the actual owners of the business. Let's take a look at how the owners of a tutoring service can be divided and the amount that can be claimed as business income:In order to claim any income on behalf of the owners of Tuto, an individual who meets these requirements is required to act as director. The person could be a relative or friend. However, in order to be considered as a director, he or she has to be the 'general manager' of the business. And the business has to have been in operation for six months or longer. The person may also have to act as president, but that person only has to work on the day-to-da y affairs of the business.In addition, a person is not required to be employed by Tuto to be deemed as an owner of the company. However, he or she must have knowledge of the general trade of the company and have kept up with its marketing. For example, if the person works as a sales person for a large department store chain, that person would qualify as an owner of the tutoring service. Similarly, if the person works for a fashion designer, the person would qualify as an owner of the company.There are some other requirements that must be met in order to meet the business structure of the tutoring service. For example, the owner has to pay a certain amount of capital or profit to the company. This capital or profit should not exceed 10% of the value of the assets.Also, a person is not required to own more than one tutoring service. In other words, there cannot be more than one tutor servicing a single student. For example, a person who tutors English as second language students can n ot have his or her business solely owned by him or her. Similarly, a person who tutors students from a certain country, but has also tutored all other students, do not need to own that tutoring service.In order to claim business income on behalf of the owners of Tuto, the tax returns of each owner must be filed separately. On these returns, the owners of the tutoring service must report the total revenue and expenses for the year in a specific manner. For example, one of the forms is called the Form 3115, Profit and Loss From Business, and it is the formal means of reporting any income that the business earns.Other than the tax forms mentioned above, another thing that the owners of Tuto have to do is to appoint a CPA to audit their financial statements. As part of the audit, the CPA will make sure that the accounting records are correct and that the revenue is the amount that was expected by the owners of the tutoring service. When it comes to determining income, the CPA will deter mine whether the actual amount of profit that was realized was more or less than the amount of revenue that was expected. The audit report is supposed to be made public and should be filed with the IRS.On the other hand, Tuto should file their financial reports on time. To this end, the tutor has to maintain accurate and up-to-date accounts in order to keep their tax filings up to date. The directors of the company are responsible for reviewing these accounts and approving any changes that the company wants to make.