If I open a corporation how do I get taxed
I am thinking of opening a corporation for my small business but I am not sure how the taxes work. If the corporation makes profit, I heard you have to pay 21% tax which is less than individual tax.
Do I have to pay extra tax if I want to take the profit from the corp into my own account? If I have to pay double tax then it's not worth the hassle.
Hi I am also interested in knowing the answer to this question. Nayapidi would you be kind enough to answer here so others can benefit too?
please PM me with details.
You are taxed twice in C corp. First on c corp income then as dividend when you distribute the profit. The only way to take money out of C corp is either as a salary or dividend. C corp is not recommended for most small businesses.
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