PLEASE NOTE: Legislative Information cannot perform research, provide legal advice, or interpret Maine law. For legal assistance, please contact a qualified attorney.
An Act Regarding the Recognition of Corporate Entities for Tax Purposes
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §194-A  is enacted to read:
§ 194-A. Corporations
 
1.  Corporate entity.     A corporate entity formed in accordance with Title 13, Title 13-B or Title 13-C, or under similar provisions of the laws of another state, must be recognized for purposes of this Title if it either:
 
A.  Has a business purpose; or
 
B.  Conducts business activity.
 
2.  Owner of income of corporation.     A corporate entity recognized under subsection 1 must be regarded as the true owner of all income paid or payable to the entity, including, but not limited to, any distributive share income of the entity.
 
SUMMARY
This bill clarifies that the State recognizes a corporation as a separate entity for tax purposes and provides that income of the corporation is taxable as income of the corporation rather than the owner of a distributive share of the income.