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Corps are taxed differently than individuals in many ways....especially because of how they account for income. Tax rates for Corps - 34 or 35% as base...are much higher than individuals.
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∙ 15y ago
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Which form of business organization is taxed twice?
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.
Corporation advantages and disadvantages?
An advantage to having a corporation is limited liability. A disadvantage to having a corporation is the fact that income is taxed twice.
When a corporation receives a dividend from another corporation how is it taxed?
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.
What are some advantages to having an S Corporation?
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.
What legal form of organization's income is not taxed under individual income tax rate?
corporation
When a company files as an LLC on a W9 form what would be the appropriate circumstance in which a corporation would be chosen as the tax classification?
If the corporation choses, under the "check the box" elections to be taxed as a corporation. Many do.
What is the tax rate when you sell a house owned by a corporation?
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.
Which legal forms of organization is most expensive to organize?
A corporation, taxes generally higher because corporate income is taxed, and dividends paid to owners are also taxed at a maximum 15% rate making it more expensive to organize than other business forms.
Limited company may choose to retain profits?
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.
Corporation vs LLC?
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.
What happen to the competition in gasoline pricing?
Gasoline pricing is regulated and taxed, therefore, one corporation can not change prices dramatically.
When an S-Corporation dissolves can the officers be held liable for its debt?
A s-corp is a designation assigned by filing special forms with the IRS. Its a corporation, taxed like a partnership. Thus no liability for officers.
