What is the democrats tax increase plan for Sub S corporations?
You report business profit on your personal tax return so you can "make" the $ 250,000 a year mark. However, what you actually take out of the business and put into your personal savings accounts can be much much less, since your BUSINESS needs the extra capital to operate and expand.
The alternative is a C corporation and "double taxation" where your business has a tax rate on its income, and then you pay personal tax rates on the SAME money once you pay yourself a salary.
Taxation best answer:
Answer by Thoughtful Monkey
A C Corporation doesn't really count as "double taxation" unless you're in the habit of regarding company earnings as your own personal bank account - which is illegal.
Taxation
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