how to compute the tax liabiltity for land development business

[Indudhar K]

Myself and other friends totally 20 members,are interested in doing the business of land purchasing and selling (land developing) real estate nature. whether we should form a partnership firm or Pvt Ltd Company, which is best suitable for our business and how is the tax computed on our business.. Please guide me..

AI Summary

Considering a Private Limited Company for Land Development: Separate Legal Identity & Complex Incorporation Process A group of 20 individuals is exploring the best structure for a land development business, considering whether to form a partnership firm or a private limited company. The consensus among respondents is that a private limited company might be more suitable due to the large number of members, offering a separate legal identity. Both business structures face a similar tax rate of 30%. However, forming a partnership is simpler and quicker, whereas incorporating a company involves a more complex process. Additional considerations include capital contributions, management, and maintaining relationships among members.