You may be thinking, ‘I don’t understand what people are talking about . . . why do I need to worry about double taxation with a corporation?’
What is generally referred to as double taxation in a corporation is how the profits from a corporation are taxed.
With a C corporation, the corporation is charged tax on net income. The corporation distributes a portion of its net after tax income as dividends. When the shareholder receives dividends, the dividends are taxed. Thus, in essence the money earned by the corporation is taxed twice.
With an S corporation, the corporation does not pay tax on its profits; rather, those profits are passed on to the shareholders and are taxed at the shareholders individual tax rate.
Tags:
This entry was posted by Tena Chase
on Friday, May 1st, 2009 at 8:23 pm and is filed under About Corporations.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
About The Author
Tena L. Chase has over two decades of experience directing financial accounting and business management in a variety of industries. Her work has resulted in significant savings and increased profitability for her clients. She is skilled at ensuring strict adherence to governing polices, regulations, and standards and she has an unwavering commitment to help her clients achieve strong financial performance while upholding the highest ethical standards of the accounting profession.
Highlights of Work Accomplished for Past Clients include:
* Identified more than $500,000 in assets that had been inadvertently written off; added assets to balance sheet and notified tax accountant of changes.
* Discovered and corrected $100,000 in overstated expense and liabilities, resulting in increased net income and owner equity.
* Recommended and set up credit card processing and created Web site to establish organization’s online presence.
* Streamlined billing and accounts payable functions, requiring less time and making information more accessible.
* Increased employee benefits at no additional cost to the employer, while saving the company time and money in benefits administration.
Tena is Licensed by the NACPB as a Certified Public Bookkeeper (CPB) and an Intuit Certified QuickBooks ProAdvisor. She holds a Bachelor of Arts degree in Strategic Management from Dominican University of California, a Bachelor of Science degree in Business Administration from Capella University, and three Associate of Science degrees in business from Mendocino College (Accounting; Small Business Management; Business Administration.) Tena was included in the
2009 edition of Stanford Who's Who. Want more information? www.tlcbusinesssolutions.com/tena.html
Leave a Reply
Thanks for the great post! You have a new fan.
I enjoy visiting daily to see your writings. I have your page bookmarked on my daily read list!
Very cool! I just bookmarked it too so I look forward to seeing more.
Great article, I hope I can learn much information About it!
hi, good apple in your post, I love that elegant apple, I need to find one for me, jane
Hi there could I reference some of the insight found in this blog if I reference you with a link back to your site?
Great blog post. Really looking forward to read more.
Thanks for the interesting post! May I ask where you get your sources from?
I have known much of this for years. I was involved in forming a corporation for the first time at 17.
Cool, Hey I think you have a great blog going here,I found it on Bing and plan on returning regularly for the information that you all are providing.
Greetings ! Do you maintain some sort of gift box where I should provide gift in PayPal?
No, it’s free. Thanks for asking.
I was reading through some of your articles on this site and I believe this internet site is real instructive! Continue putting up.