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C Corporation in the US must pay taxes on the net profits of the corporation before dividends and taxes. The corporate tax is a progressive tax and the tax brackets start at 15 percent then climb up to 35 percent.
S corporations
yes
A distributor will pay taxes as would any other business. They would file the return based on the type of business they are legally. If a sole proprietorship, they would file a 1040 with a Schedule C for the business section. If a C Corporation, they would file a 1120 Corporate return. If a Subchapter S corporation, they will file 1120S. A partnership will file a form 1065 return. Their income is calculated as income minus cost of good sold minus expense will equal income.
Non-owners are subject to payroll taxes as any other employee is. Owners will pay FICA tax when they file their Form 1040, but are not subject to unemployment tax if they agree to not be taxed as a corporation.
C Corporation in the US must pay taxes on the net profits of the corporation before dividends and taxes. The corporate tax is a progressive tax and the tax brackets start at 15 percent then climb up to 35 percent.
Taxes don't actually pay for anything. They go to the Federal Reserve, which is a private owned corporation, not run by the government.
S corporations
S corporations
Yes. In this state a corporation still has to pay a fee even if it did no business. It does not have to pay corporate income tax.
Taxes don't actually pay for anything. They go to the Federal Reserve, which is a private owned corporation, not run by the government.
to pay dividends
Income to the corporation, as a legal "person", is taxable against the corporation. When the treasury pays dividends from its income to its shareholders, the dividend is taxable again as "income" to the shareholders. A "subchapter S-corporation" avoids this by skipping the corporate taxes and directly taxing the shareholders for any corporate income.
yes
It all depends if you are a sole proprietor of a corporation. You can estimate that you will pay fifteen percent of your profit in taxes.
A distributor will pay taxes as would any other business. They would file the return based on the type of business they are legally. If a sole proprietorship, they would file a 1040 with a Schedule C for the business section. If a C Corporation, they would file a 1120 Corporate return. If a Subchapter S corporation, they will file 1120S. A partnership will file a form 1065 return. Their income is calculated as income minus cost of good sold minus expense will equal income.
One disadvantage of a LTD is that they would have to pay Corporation tax on top of any existing taxes.