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Wersja z 17:09, 9 lis 2026
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A C Corp pays tax depending on its profit for this year and then any dividends paid to shareholders additionally taxed. Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The net income flows through to the shareholders who then pay tax on cash. The big difference significant that the 15.3% self-employment tax does not apply. So, by forming an S Corporation, your business saves $3,060 for this year on a nice gain of $20,000.
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