C Corporations are one of the oldest business structures out there. And, while they come in and out of fashion, but they never go away. In today’s tax climate, the C Corporation is quickly gaining importance as a tax-savings tool. Will it work for your business?
Tags: business entity • C Corporation • C Corporation taxation • corporation tax savings • double taxation • save taxes with C Corporation
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On January 16th, 2010 | 7:55 am
Brandi said:
If you don’t distribute a dividend then if the profit is in the C corp account after expenses, does this just get taxed at normal C corp tax rate?
On January 17th, 2010 | 7:25 pm
Diane Kennedy said:
The income left inside the C Corporation is taxed at the C Corp rate. That can be a good thing. For example, the first $50K is taxed at just 15%. If you’re currently paying at the new high personal tax rate of 39.6%, moving income from that rate to the C Corp means a savings of over $12,000.
On January 25th, 2010 | 9:43 pm
Annie Hall said:
Can you explain what you think the difference is with a C corporation at 15% and a C Corp that is treated as a personal services corporation, and taxed at 34%?
And how to avoid that pitfall if you are using a C Corp.
Thanks.