Dividends are income to the receiving corporation. If it is a sub-chapter S corporation, it is income to the shareholders, as is any other income of the corporation.
a C corporation the corporation is a separate entity who's profits are taxed then what's left of those profits are distributed/shared by the individual share holders who will be taxed on their individual share of the profits. Where as in a S corporation, subchapter corporation, the corporation entity I believe doesn't get taxed only the individual share holders do. Most small businesses are S corporations.
no it is not
An advantage to having a corporation is limited liability. A disadvantage to having a corporation is the fact that income is taxed twice.
ReganIt is taxed NOW, if the recepient receives above an amount of income otherwise.It USED to be not taxed.
Some advantages of having an S Corporation are allowing company owners to only be taxed once. Any profit made, goes to him so he will then be taxed once rather than twice.
corporation
If the corporation choses, under the "check the box" elections to be taxed as a corporation. Many do.
The portion corporate profits paid out of stockholders is A dividend is quarterly payment to stockholders of record, as a return on investment. Dividends may be in cash, stock, or property, and are declared from operating surplus. If there is no surplus, the payment is considered a return on capital. Dividend payments are, in effect, taxed twice-once when corporate profits are taxed and again when the dividend is received by a taxpaying stockholder. The corporate profits paid out to stockholders is called dividends.
The profit from the sale of the house (amount of sale minus the basis) will be taxed as income for the corporation, at their usual rate.
Only if it is taxed as a proprietorship or partnership... If it is taxed as an S-Corporation, then the IRS does not like to see accumulations of earnings within the company.
Assuming you refer to a C-corporation, the major difference is the tax treatment of revenue/expenses and profit. The C-corporation is taxed at corporate tax rates whereas the LLC passes to its Managing Members all of its profits. The individual Managing Member is taxed at personal tax rates. There may or may not be other advantages of one over the other; for example, liability.
Gasoline pricing is regulated and taxed, therefore, one corporation can not change prices dramatically.