Dealing With Tax Problems: Easy As Pie: Difference between revisions
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Revision as of 01:49, 14 September 2026
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There are two basic forms, C Corp and S Corp. A C Corp pays tax depending on its profit for all seasons and then any dividends paid to shareholders is also taxed. Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The gain flows to the shareholders who then pay tax on cash. The big lanciao significant that the 15.3% self-employment tax does not apply. So, by forming an S Corporation, company saves $3,060 for the majority on a profit of $20,000.
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