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Revision as of 15:59, 15 September 2026

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Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The money flows transfer pricing through which the shareholders who then pay tax on cash. The big difference extra that the 15.3% self-employment tax does not apply. So, by forming an S Corporation, business saves $3,060 for 4 seasons on a fortune of $20,000. The tax still applies, but Just about every someone opt to pay $1,099 than $4,159.

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