History Of Your Federal Taxes: Difference between revisions
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Revision as of 15:28, 23 October 2026
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The most frequent form of legal entity is the corporation. There are two basic forms, C Corp and S Corp. A C Corp pays tax as reported by its profit for the majority and then any dividends paid to shareholders likewise taxed. Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The money flows through to the shareholders who then pay tax on cash. The big memek discover that the 15.3% self-employment tax doesn't apply.
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