Paying Taxes Can Tax The Best Of Us: Difference between revisions
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Revision as of 15:55, 16 September 2026
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A C Corp pays tax according to its profit for last year and then any dividends paid to shareholders one other taxed. Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The profit flows by way of the shareholders who then pay tax on cash. The big difference let me reveal that the 15.3% self-employment tax doesn't apply. So, by forming an S Corporation, your business saves $3,060 for this year on revenue of $20,000.
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