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1995

Business Organizations Law

Vanderbilt University Law School

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Full-Text Articles in Law

Is The Cross-Guarantee Constitutional?, Jennifer J. Alexander Nov 1995

Is The Cross-Guarantee Constitutional?, Jennifer J. Alexander

Vanderbilt Law Review

Banks play a unique and important role in our economy. They serve tremendously useful economic functions; for this reason, our society has become irretrievably dependent upon them. Banks safe- guard our life savings and business profits, and provide capital to those who need it to buy, invest, or grow.' Although these functions could be performed without an intermediary-private citizens may freely lend their cash to other private citizens who need it-banks are viewed as safer and more efficient controllers of cash flow. They allow depositors to pool their cash resources collectively in one institution; then, retaining a relatively low amount …


The Separate Tax Status Of Loan-Out Corporations, Mary Lafrance May 1995

The Separate Tax Status Of Loan-Out Corporations, Mary Lafrance

Vanderbilt Law Review

When professionals and other persons who offer their goods and/or services to the public conduct their businesses through corporations, the Treasury has acknowledged that for federal income tax purposes it must treat those corporations as separate and distinct from their controlling shareholder- employees, even where there is only a single shareholder-employee, provided that the corporation has a business purpose and the taxpayer consistently respects the corporate form. However, the Treasury has refused to accord equal dignity to incorporated workers who offer their services not to the public at large but to a single recipient or a small number of recipients. …