Dealing With Tax Problems: Easy As Pie: Difference between revisions
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Revision as of 06:46, 16 September 2026
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The S Corp pays no tax on profits. The net income flows high on 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, small business saves $3,060 for the year on revenue of $20,000. The income tax still applies, but More than likely someone is supposed to pay $1,099 than $4,159.